Challenge For Some Business Owners
If you are a small business owner, you’ve already got a great deal on your mind. Part of what keeps you up at night is what to do about the employee benefits plan you currently have in place.
Will you be able to keep it going? Will you be able to make changes to it, and still get the tax credit you’re hearing about? Is it better to just not offer a plan, and let your employees go out on their own?
Well, the government is not making it easier on you. There are about 20 news laws that will go into effect, that will determine whether or not your company is “grandfathered” in. This includes covering dependent children up to age 26, or increasing the plans deductible a certain amount. Most businesses will be in a Catch 22; they want to raise the plan deductible, but won’t be grandfathered in if the increase is too high, according to the new regulations.
Some insurance carriers state that their small business rates will increase anywhere from 15% to 28%, some higher. The defense the insurance companies are putting up is that the new health care overhaul did not touch on costs of administering the medical care – doctors, drugs and hospital costs.
So, as it stands now, if you are a small business owner, you are going to have to pay the 2014 prices, without getting the all the 2014 benefits.
