Outlined below are just a few ways small businesses and the self-employed can benefit from health care reform.
Small Businesses (Less than 50 full-time employees)
- Starting in 2010, small businesses that already provide health insurance to their employees may be able to take advantage of a new health care tax credit, which can be up to 35% of the employer’s contribution to premiums.
- In 2014, the small business tax credit will increase up to 50% (35% for nonprofits).
- The establishment of an Early Retiree Reinsurance Program in 2010 will provide reimbursements for employment-based plans that cover retirees over 55 who are not yet eligible for Medicare.
- The Washington Health Insurance Partnership (HIP) helps small businesses provide health coverage to its employees at a lower employer contribution rate starting in 2011. HIP is available to employers that currently don’t offer insurance for its employees and have less than 50 employees.
- In 2014 individuals and small businesses without employment-based insurance will be able to purchase coverage through exchanges. Exchanges are state-run health insurance markets designed to provide consumers with clear information about the available prices and coverage options.
Self-Employed Individuals
- Under new Washington State law, self-employed individuals are no longer limited to coverage in the individual insurance market. One-person businesses are now eligible for coverage in the small group health insurance market, which do not require health screenings.
- Individuals without employment-based insurance can purchase coverage through exchanges starting in 2014.