Regional Administrator Calvin Goings

Affordable Care Act, Part 2

America’s 28 million small businesses are the backbone of our economy, creating two out of every three net new jobs and employing half of America’s workforce. From mom-and-pop stores and restaurants, to high-tech startups and productive manufacturers, small businesses are helping to drive our economy and create jobs in our local communities.

Many small business owners consider their employees to be part of their family, and providing benefits such as health care is one important tool they have to help retain their talented workforce and compete for skilled employees.

The U.S. Small Business Administration (SBA) is committed to giving small business owners the resources they need to start and grow a business– including access to critical information about how the Affordable Care Act (ACA) works.

Under the Affordable Care Act, small employers will have more options.

First, starting January 1st, 2014, small businesses with generally up to 50 full-time equivalent employees will be able to purchase health insurance through the online health insurance marketplace for small businesses, known as SHOP.

The SHOP Marketplace will offer employers a choice of qualified health plans from different private health insurers and make it easier for employers to make side-by-side comparisons between these plans, based on price and benefits.

SHOP also offers employers and their employees access to health insurance plans that must include a package of “Essential Health Benefits” like coverage for doctor visits, preventive care, hospitalization and prescriptions.  Any many small employers may be eligible for tax credits of up to 50% of their premium costs if they choose to purchase coverage through SHOP.

Enrollment starts on October 1st for coverage beginning January 1, 2014.

The Affordable Care Act allows small employers to offer health coverage in a way that makes sense for their business and works for their bottom line. And the SBA is committed to leveraging our resources and federal partnerships to connect you with the facts and resources you need to understand the law.

I hope you have found this information useful.  Please feel free to forward this to your friends and colleagues. If you have comments or questions for me, please contact Connie Marshall in my office at connie.marshall@sba.gov.      Sincerely, Calvin CALVIN W. GOINGS