Health-Care Act Anniversary Brings Gift To Small Business
Last week, we celebrated the first birthday of our new health-care law, the Patient Protection and Affordable Care Act, and that’s good news for New Jersey small businesses.
Over the coming months, New Jersey small-business owners and consumers should be excited about the implementation of health-care reform, including two cost-saving provisions: small-business tax credits and the statewide health insurance exchange.
One owner ready for health-care progress is Becky Large, the president of Largie LLC, a marketing company based in Riverton. Ms. Large provides health care for herself, one other full-time employee and her special-needs child. Last year, she spent $800 per month on premiums, and this year, the cost has already jumped to $1,100 per month. With the added costs of deductibles and copays, Ms. Large spent more than $20,000 last year on health care.
Thanks to the new law, Ms. Large and other small-business owners can look forward to relief in the form of small-business tax credits. When filing taxes this April, small-business owners will be able to submit the new Form 8941 to apply for a tax credit of up to 35 percent of their health-care premiums. This should let small businesses hire more employees and provide them with health care.
Although Ms. Large loves the independence of running her own business, she’s at a disadvantage in the health-care marketplace. Because she purchases health insurance for only two employees, insurance providers have no incentive to give her a competitive price; not only are her rates excessive, they are unpredictable. The current setup of the health-care marketplace penalizes innovators who start their own businesses.
