First it was large employers who saw their coverage mandate pushed back one year. Now it’s small businesses that will see a delay in a piece of the Affordable Care Act that impacts them.
With ample repair work yet to do on the HealthCare.gov website, the Obama administration has announced that it will put off until next November an online portal to the health insurance market for small businesses. The portal provides small business health options, or SHOPs.
However, small employers who want to buy plans on the marketplace can still do so through an agent, broker, or insurance company. Small businesses are not required to buy coverage for their employees, but those that do are eligible for tax credits that reduce the cost.
Starting in 2014, employers with fewer than 50 workers can claim a credit of up to 50% of their contributions to insurance premiums on coverage purchased through a SHOP. The Obama administration says the same credits will be available for smaller employers that acquire coverage through an agent or broker.
