General Discussion
In reply to the discussion: you will be forced to drop your private insurance [View all]Swede Atlanta
(3,596 posts)Small businesses (under 50 FT employees) are exempt. That is the vast majority of "small businesses" in America except in Repuke-speak where they consider the number of owners in determining "small". So for example if the Koch brothers set up a business together and each invested $3BN in the company, but they were the only owners, the R's would consider that a small business that shouldn't have to provide healthcare for their employees even if the company turns $30BN in revenues a year and generates a 15% annual return.
So for truly small businesses nothing changes except with the eventual establishment of the exchanges they will be able to pool together with other individuals and small businesses and purchase as part of a "group" and enjoy the cost savings. It will help small businesses which want to provide health insurance to provide it.
But other businesses >50 FT employees must provide health insurance or pay a penalty. And the minimum coverage required to satisfy this requirement is specified at something like 60% of the actual cost of the health care.
So...
(1) Small businesses that do not today have a requirement to provide health insurance still will not but will have tools to be in a better position to offer it. And for those that can't afford or choose not to afford it, individuals will have the ability to buy into a state exchange.
(2) Larger businesses > 50 FT employees will be required to provide health insurance. This is no different than having to pay into workman's compensation, employer payroll taxes, etc. Now this may lead some companies to keep their employment just below the 50 level mark just to avoid coming under the law. But even these businesses will now be able to purchase in the exchanges.
Today my employer is a large multi-national company. They are self-insured which means they actually pay for all of the healthcare. They have an insurance company that administers the program on their behalf.
It is possible some self-insured companies will look at actually buying in an exchange rather than self-paying. But this will only be a financial option for them. They will still have an obligation under the law to provide the minimum required health insurance or pay up to a $3K fine, per employee, per year.