Small businesses are trying to figure out what the health care reform (the Patient Protection and Affordable Care Act) means for their business. Watching the news and reading articles online, I get confused to! Is it better to start implementing some of these health care reform changes to our small business benefits plan or should we wait until the dust settles and things become more clear? A handful of States are taking the health care reform to court. Some district courts have ruled the individual mandate is not legal while other district courts have ruled the reform laws are constitutional. What does this mean for small businesses? What should entrepreneurs and small businesses owners do?
I recommend implementing the newest changes that are already in affect. These are minor changes in coverage and will ensure your small business benefit plan is up-to-date and in compliance with current laws. Make sure your small business benefit plan has been updated to:
- Extend coverage for employee’s children, up to the age of 26.
- Eliminate certain lifetime dollar limits on essential benefits.
- Eliminate certain annual limits.
- Eliminate coverage for nonprescription over-the-counter drugs through flexible spending accounts (FSA’s).
- Check with your accountant and/or CPA to see if your small business qualifies for the Small Business Health Care Tax Credits.
A majority of the other health reform laws go into affect in 2014. Therefore, your small business has plenty of time to implement the future benefit changes. Not to mention, a lot can change between now and 2014.
Michelle is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and business solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, quilting, and hanging out with her family.