Four Ways Obamacare is Affecting Small Business Costs

After the slew of canceled health policies last fall, you’d think the Obamacare cause would be hurting enough. However, another time bomb is about to explode, and it could change the way small businesses think about the not-so-affordable healthcare act: increased costs for small businesses.

Just like the canceled health plan, this is yet another example of how mandating health insurance comes at a cost for those who need it most. While health insurance price rules are put into effect, there are going to be winners, and there are going to be losers. Unfortunately, small businesses are often on the losing end.

Obamacare: The Cost to Small Business

• Older Workers- One of the biggest costs to small businesses comes from the mandate itself in regards to providing health insurance for the young and the old. According to the law, older workers, even those with health problems, can not be charged more than three times the amount for their insurance as younger workers. If your business consists of mainly older workers, this can greatly reduce your current insurance rates. However, if your company employs mostly younger, healthier workers, you may end up paying much more. Why? Because the cost has to be offset somewhere.
• Minimum Benefits- It used to be that small businesses could pick and choose what they wanted to offer with their insurance. If certain benefits were too expensive, they simply excluded them to save costs to both the company and the worker. With Obamacare, this isn’t an option. Small businesses have to provide the same minimum amount of benefits that individual health plans do, including mental health care, pediatric care, and services for substance abuse. This can quickly raise the bottom dollar.
• Tax Credits- One of the biggest benefits that small businesses are raving about when it comes to Obamacare are the tax credits they can receive to help offset the cost of the health insurance they have to purchase. While earning back 35% to 50% of the cost may sound great, it’s important to know that these won’t last. They are only available to small businesses for up to five years, and that number drops to two years once the more at  http://hhstaffingservices.com/four-ways-obamacare-is-affecting-small-business-costs/