It can feel nearly impossible for small businesses to offer health coverage to their employees.  A special tax credit new in 2010 can help small businesses and tax-exempt organizations provide health insurance, according to “New for 2010 – Tax credit helps small employers provide health insurance coverage,” from The Gilmer Mirror out of Dallas.  The credit is included in the health care reform act, the Patient Protection and Affordable Care Act.  The credit aims to help small businesses obtain or maintain health insurance coverage from companies like Aultcare and is aimed towards those employers who pay at least half of their employee’s single coverage cost.  The IRS Commissioner urges small businesses and tax-exempt organizations to see if they qualify for this tax break because it is already in effect.

The current maximum credit is 35% of the premiums paid by small businesses in 2010 and 25% of the premiums paid by tax-exempt organizations that are eligible employers.  The maximum credits increase in 2014 to 50% for small businesses and 35% for tax-exempt employers.  The small and tax exempt employers can obtain coverage from Mercy Health Plans or any other insurance provider.  This credit targets small businesses and organizations employing workers with low to moderate income levels.  Typically they have to employ less than 25 full time equivalent workers earning less than $50,000 per year on average.  The maximum tax credits go to businesses employing fewer than 10 full time equivalent workers, earning less than $25,000 on average.  The general business credit can be redeemed starting in 2011 and the IRS is sending out postcard notifications to businesses that may be eligible.

After a year in the making, the Patient Protection and Affordable Healthcare Act has passed.  Katie Adams of Investopedia describes “10 Ways the New Healthcare Bill May Affect You.”  As long as they aren’t offered employer health coverage you can insure dependent kids up to age 26 now, regardless of whether or not they are in school.  The age limit was 19 or 23 if they were in school.  Health insurance companies like Mercy Health Plans will not be able to cancel your coverage because you get sick.  It was actually common for health insurance companies to cut costs by dropping the coverage of patients who fell ill.  Children cannot be denied coverage due to pre-existing conditions beginning this year.  In 2014, that will apply to adults as well.  Companies will no longer be able to cap the amount of lifetime coverage that patients receive, especially meaningful to people with expensive or chronic conditions.

A big change for people with pre-existing conditions that couldn’t obtain health insurance is that they will be able to purchase coverage through “high-risk pools” run by states that put a cap on your out-of-pocket expenses.  By 2014, you have to carry insurance coverage from a company like Aultcare or risk getting fined.  There will be government assistance for people who are not covered by employers and can’t afford coverage on their own.  There will be more options for coverage in 2014 with insurance marketplaces called “exchanges”.  There won’t be as much flexibility with flexible spending accounts in a few years.  Fewer expenses will qualify and you won’t be able to put as much pre-tax money into your FSA.  Family income greater than $250,000 will be taxed more in Medicare payroll taxes beginning in 2018.  Medicare costs will be changing for many, ranging from decreases for people who use it as their primary insurance to increases for high-income people.  Look for more details to come regarding the affects of the healthcare bill on you and your insurer.