Healthcare Law Affects Small Business

America has been watching, listening and waiting as our government has debated healthcare reform on their way to passing a law and changing America's healthcare dramatically. Recently, the votes were counted and the Healthcare Law has been passed. However, the changes will take affect slowly, the majority of changes have deadlines to happen by 2014. What small business owners need to know is how this law will affect their business immediately and in the long run.

Small businesses, especially those with 50 or less employees, will benefit from this law. The states are required to set up Small Business Health Options Programs, or "SHOP Exchanges by 2014. These SHOP Exchanges allow small businesses to buy insurance through an "insurance exchange" allowing them to find a plan that provides better coverage at a lower cost. Also, small businesses that provide healthcare will receive a tax credit for at least 35% of health insurance costs.

Businesses with 50 or more employees will be required to provide insurance for their employees. Businesses can choose to either offer their own healthcare coverage or pay a penalty of $750 a year per full time worker. The coverage provided by the business will have to be at least as good as that provided by the government, if it is not, than the business will be charged more penalties. However, none of this is required until 2014 and could be changed depending on what amendments to the healthcare law are passed before the deadline year.

Overall, the current healthcare law seems to benefit the majority of small businesses. According to the Kaiser Family Foundation, ninety-six percent of businesses in the country with more than 50 employees offer health insurance and 95 percent of the 28 million small businesses in America have fewer than 50 employees. If these statistics are true, the healthcare reform may offer positive affects on small business.