Well it was a very exciting Saturday night for Health Reform enthusiasts like myself. By now, you have all heard the news and seen the tweets (apparently, rumors of Kanye West’s planned interruption of Pelosi’s victory speech were exaggerated). Now, most business owners and employers just want to know what all of this means to them.
Well, for now (drum roll please) nothing – as the Senate will now need to voice their very slightly more conservative opinion on the matter. But here is a very quick summary of the key points to be aware of:
- Employer will be required to contribute at least 72.5% of the cost of acceptable coverage for individuals and 65% for family coverage.
- In lieu of paying for coverage, employers may opt to “pay” instead of “play” by paying a payroll-based fee in accordance with a sliding scale, up to 8% of payroll for firms with an annual payroll greater than $750,000 (firms with payroll less than $500,000 are exempt).
- A tax credit equal to 50% of the cost of health coverage is available to firms with 10 or fewer employees and $20,000 or less in average annual wages. Credits are phased out if the employer has 25 or more employees and average annual wages are $40,000 or more.
- Grants will be available for small employer-based wellness programs.
For a full breakdown of employer provisions contained in H.R. 3962, please click here.