How the Health Care Reform Act will impact Businesswritten by
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Here is a recap of how the Health Care Reform Act will impact business owners.
How the Health Care Reform Legislation Will Impact Your Individual and Employer Clients Immediately.
Individuals and employer group plans that wish to keep their current policy on a grandfathered basis can if the only plan changes made are to add or delete new employees and any new dependents. In addition, an exception is made for employers that have scheduled plan changes as a result of a collective bargaining agreement. The reconciliation bill, if enacted, would eliminate the ability of plans to grandfather in a
number of areas.
Eligible small businesses (no more than 25 FTEs, pay average annual wages of less than $50,000 and provide qualified coverage) are eligible for phase one of the small business premium tax credit. Small employers will receive a maximum credit, based on number of employees, of up to 50% of premiums for up to 2 years if the employer contributes at least 50% of the total premium cost.
Employers that provide a Medicare Part D subsidy to retirees will have to account for the future loss of the deductibility of this subsidy on liability and income statements.
Current law eliminates this subsidy for the 2011 plan year, and the reconciliation package, if enacted, could delay it to 2013, but there is an immediate accounting impact.
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