Health Care Reform for Small Businesses California – Video

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Health Care Reform for Small Businesses California – Video

With Health Care Reform (Affordable Care Act) (ACA), business owners want to know:

  • What’s going to change?
  • How much will it cost? and,
  • What can I do to save money.

We’ve created a short video that addresses these questions. http://www.youtube.com/watch?v=RcQ5j8mu_Bk

The video also describes what will not change, including:

  • No requirement for small businesses to offer benefits;
  • Benefits continue to be a tax deductible expense for the employer and non-taxable compensation to employees;
  • Benefits continue to be an excellent way to attract and retain good employees.

Things that change include:

  • Standardized benefits;
  • Rating system to determine the monthly cost (premium);
  • W-2 employees are required; and,
  • New hire waiting period reduced to 60 days in California and 90 days in other states.

To address the cost question, we look at a few changes from the ACA:

  • Risk Adjustment Factor (RAF) goes away;
  • Employee Rate based on exact age – not a range, (e.g., 31 year old rate vs. 30-39 year old rate);
  • Each dependent spouse or child will have a separate rate based on age.

To pay less, suggestions include:

  • Renew Early (December 2013)
  • Use an RAF Special if your group qualifies

In 2014 –

  • Use plans with smaller provider networks
  • Use plans with higher deductibles
  • Look closely at the Small Business Health Insurance Tax Credit
  • Get good advice from an agent that specializes in health insurance and employee benefits (like www.BenefitsCafe.com).