Small Businesses Without Health Insurance–Federal Tax Credit On Medical Costs For Workers

Certain small businesses may be able to take advantage of a small business healthcare tax credit which is still available to certain small business employers. Obviously, companies who have a sizable number of workers may be able to find more affordable health insurance options due to the fact that the risk for the insurer will be spread out over a larger number of individuals.

Yet, an employer who covers over half of the costs of health insurance for their workers and has less than 25 full-time workers can qualify for this small business tax credit which can cover at the present time up to 35% of the costs an employer must meet on small business health insurance premiums.

It’s hoped that factors like the slow economy, low consumer spending, or even a business owner’s feelings that health insurance is too costly can be countered by this tax credit, which can help employers provide health insurance to workers in a small business environment. Ideally, employers can take advantage of this IRS tax credit for small business health insurance and either continue providing coverage for their workers or implement a new plan where workers were previously uninsured.

Obviously, small business owners can also reduce the costs of health insurance by shopping around and getting quotes from various insurance agencies. Again, business owners who only have a small number of employees may find that premium costs are harder to bear since many insurers see a small company as a higher risk than a company where more employees are present.

The thinking that is used by many insurers is that, in a business where more employees are being insured, the insurer will collect more in premium payments than they will pay out in medical costs. Obviously, in cases where there are few employees, insurers may be concerned that a few medical claims or even a single claim for high cost medical treatment could overshadow any premium amount that they collect from a small business.

Yet, even if a small business owner must meet high health insurance costs, this tax credit can help reduce the overall payments that must be made in order to insure small business employees under an employer healthcare plan. While not all small businesses may qualify, those companies who simply feel that either continuing their health insurance coverage or acquiring health insurance is too costly may be surprised that this tax credit incentive could allow them to provide a safety net if their workers were to be in need of medical assistance.