Small Business Employee Health Insurance Plans And The Federal Healthcare Tax Credit

Small businesses who provide health insurance to their workers or may have been considering a healthcare plan may qualify for a health insurance tax credit available to certain small business owners who might have to meet a high cost for premiums related to providing medical coverage for their employees. Numerous companies who do not provide health insurance for their workers simply feel that they cannot afford to do so, but it’s hoped that this tax credit which may cover up to 35% of premiums paid starting in 2010 by small businesses will prompt more companies to offer coverage for their workers.

Also, with difficult economic times still remaining and causing trouble for some businesses, this tax credit is hoped to help keep health insurance options available for small business employees who, without insurance, may either be unable to afford healthcare costs or could be hit with high medical bills if problems were to arise which necessitated treatment or surgery.

While qualifying businesses may only be able to use the tax credit on up to 35% of their premiums, by 2014, this credit is said to increase to 50% of premiums paid by employers who qualify for this health insurance tax credit. While there are numerous opportunities for employers to acquire health insurance, like employer group health insurance policies, smaller businesses which have fewer than 25 full-time workers or, for example 50 employees who may only work 20 hours a week, often have a more troubling time meeting the costs of health insurance.

Larger companies may be able to find more affordability when it comes to health insurance premiums because coverage will be spread out over a greater number of individuals and, as a result, a health insurer will typically see this as assuming a smaller amount of risk than if a company has only a limited number of workers.

Understandably, there are some companies who may not benefit from this particular tax credit and may not be in a position where they can afford a premium health insurance plan for their workers.  Yet, tax credits like this are hoped to prompt more business owners to seek out health insurance opportunities for their employees, as there are ways beyond a health insurance tax credit to bring affordability to an employer’s health insurance plan.