Many employers often worry about the costs that are associated with providing health insurance for their workers. However, a new tax credit may help business owners who pay premium costs for their workers and provide health insurance policies at their business. Many employers to qualify for this tax credit can benefit by obtaining a credit of up to 35% of premium costs for providing health insurance for their workers in 2010.
Small businesses are often the only source of health insurance that many individuals have seeing as how obtaining health insurance outside of an employer is often much more costly and, for many workers, unaffordable. Employer group health insurance offers many access to healthcare coverage due to the fact that an employer who has various employees will be able to obtain a policy where risk is spread out among a larger number of people and therefore may have lower costs overall.
Employees who either provide health insurance for themselves or have no health insurance often are financially strained when medical costs arise. There are cases where some employees who have been stricken with sudden illness or injury have acquired such a large amount of health care debt that they have had to file bankruptcy or are burdened with the weight of these costs for years.
It’s hoped that this tax credits will allow more employers to gain some assistance in paying for health care costs for their workers and will prompt more small business owners to provide health insurance plans for their employees. While more employers who do provide health insurance plans may set in place stricter guidelines for just who is covered, meaning a worker’s family, or what medical conditions are covered, this tax credit can help lower overall costs that employers must incur for premiums through the 2014 tax year, at which time an employer may have up to 50% of premium costs covered.