5 Myths about the ACA and Midsize Businesses
With the many changes to health insurance, including the many changes to comply with the ACA, many midsize businesses have struggled to understand and therefore, comply, with these rules.
These myths apply to small businesses with 1 to 100 employees:
Myth #1 : Most businesses our size do not provide health insurance.
- Only a small percentage of companies will be offering coverage for the first time. The ACA requires those that already offer coverage to change their plans to comply with the ACA.
Myth #2: Our business is exempt from the ACA Employer Mandate.
- In 2015, employers with more than 100 full-time employees must provide health insurance to those workers. However, in 2016 those companies with between 51 and 100 full-time employees will also have to provide coverage.
Myth #3: We can continue to offer a limited benefit plan.
- Limited benefit plans do not comply with ACA guidelines, so coverage will need to be updated to meet requirements.
Myth #4: We will have to buy our insurance from a government website.
- The Small Business Health Options Program (SHOP) is the marketplace for small businesses. However, using this exchange is optional. Employers can purchase a plan directly from a company or use a broker at no extra cost.
Myth #5: Even if we are penalized for not providing coverage, we can deduct the penalty from our income taxes.
- Companies that fail to follow the employer mandate are subject to a penalty. However, the penalty is set up as shared responsibility fee, making it a tax that cannot be deducted from federal income taxes.