How Obamacare Can Help Your Business Grow
Experts at the Department of Health and Human Services are currently working on the breakdown data of these enrollees. While the exact number of business owners who registered on the federal government website remains unknown, it is logical to infer that small-business owners, company founders, entrepreneurs, self-employed professionals and independent consultants account for far more than half those sign-ups.
That's because small businesses currently make up about 99.7% of all U.S. employers and create more than 75% of net new jobs, according to the Small Business Administration. Small- and medium-sized enterprises also contribute nearly two-thirds to U.S. national output, or non-farm GDP.
Up until the ACA rollout, many small businesses were able to garner only half the health care benefits their employees should have had, for nearly twice the amount invested in their insurance plans. Not anymore.
The ACA offers subsidies to the tune of as much as 50% of the costs incurred to extend medical insurance to individuals who work in smaller-scale enterprises that have fewer than 25 full-time employees earning a salary below $50,000 a year on average. These subsidies, or tax credits, are adjusted for inflation beginning in 2014.The Small Business Healthcare Tax Credit, originally introduced in 2010, was reinstated by the Internal Revenue Service in March 2014 with an announcement to raise the federal tax credit from 35% to 50% of the amount that private sector businesses contribute to employee health coverage through a SHOP Marketplace. The maximum credit for premiums paid by non-profit organizations is being increased to 35 percent from 25 percent. The ACA will help businesses optimize their costs and enhance their resource efficiency in the long run. "In about 10 or 20 years, businesses would probably look back and say, 'that was long overdue,'" said Joseph Chinnock, 45, an entrepreneur consultant based in Boulder, Colo. Meanwhile, Obamacare has come under fire for its imposition of fines on organizations that don't provide employee health insurance when they have 50 full-time workers or more. Whats more, many businesses, especially retailers and fast-food chains, are reducing the work-hours of their part-time employees to avoid paying for their healthcare. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.