Meredith K. Olafson, Senior Policy Advisor and Community Moderator for the U.S. Small Business Administration, has published a helpful blog post for small businesses who are knee-deep in navigating the complexities of the Patient Protection and Affordable Care Act. Titled “7 Key Terms in the Affordable Care Act that Small Businesses Should Know,” Olafson and the U.S. SBA concisely define a handful of key terms that small businesses should be familiar with. She describes what an Affordable Insurance Exchange is, what essential health benefits are, and references the Small Business Health Insurance Tax Credits.
Also described are the Individual Shared Responsibility and Employer Shared Responsibility provisions of the law. Also known as the Individual Mandate, this provision of PPACA requires individuals to maintain a minimum level of insurance coverage throughout the year or pay tax penalties. Similarly, Employer Shared Responsibility, also referred to as the Employer Mandate or Play or Pay penalty, requires employers to offer a minimum level of coverage at an affordable rate to employees or face potential tax penalties.
Small business owners should take steps to familiarize themselves with these terms and others, particularly modified community rating, in advance of implementation. PPACA impacts employers of different sizes in different ways. It is important that small business owners know which provisions apply to their organizations in order to create a strategic plan for addressing compliance with healthcare reform requirements.
To view the blog post, or for more information on the U.S. Small Business Administration and healthcare reform, click here.