The 2010 Patient Protection and Affordable Care Act will do a lot to upend the U.S. healthcare system, the most notable benefit of which will be to provide coverage to an additional 30 million Americans. But how will it affect small business owners and entrepreneurs?
While there is substantial controversy surrounding this issue, namely in how it will force small ventures to pay for their employees' health insurance, most employers do not plan to adopt measures to avoid the mandate, according to a report released this week by RAND Corporation.
Beginning in 2014, health insurers will no longer be permitted to set premiums for employees of small companies based on gender, health status or claims history. Analysts claim that allowing more employers to keep their old plans will lead to higher premiums and, hence, less interest in the traditional model.
"We found that keeping the rules as they are written, particularly the limitations on maintaining a grandfathered plan, will be essential to keeping premiums affordable in small business insurance exchanges," said Christine Eibner, a RAND senior economist, according to the Washington Post.
Entrepreneurs looking to incorporate in California, New York or elsewhere need to consider how the PPACA will impact their payrolls.
Tags : California, New York, LLC, LP, Taxes, Corporate Books, Finances
Posted: Feb 13th, 2012