bake - May 2013 - 18

legislation

Plan Ahead for
Health Insurance
Small employers have a tough time ﬁnding and affording
coverage that meets the needs of employees. Starting in 2014,
you’ll have more choice and control over your health insurance
spending through the Small Business Health Options Program
(SHOP), a new program designed to simplify the process of
ﬁnding health insurance for your small business.

Plans will present their cost and coverage information in
a standard format, using plain language that’s clear to under-

Small businesses that employ more than 50 full-time workers

stand. You and your employees will be able to easily compare

will be required to offer health insurance to employees, or pay

plans based on price, coverage, quality and other features that

into a government fund.

are important to you.

Starting in October, you’ll be able to get information about all

Get ready now

the plans available in your area. You and your employees will be

1. Make sure you understand how insurance works. For

able to enroll through your broker, directly through the website,

example, you’ll want to understand the difference between

or by calling a toll-free phone hotline.

premiums and out-of-pocket costs, like deductibles and
copayments. You’ll want to compare these details to help

You choose the level of coverage you’ll offer, and deﬁne how
much you’ll contribute toward your employees’ coverage. You’ll

determine which plans are right for you and your employees.
2. Learn about different types of health insurance. Through

also have exclusive access to an expanded Small Business

the Marketplace, you’ll be able to choose a level of coverage

Healthcare Tax Credit. This tax credit covers as much as 50%

that gives you and your employees the right balance of cost

of the employer contribution toward premium costs for eligible
employers who have low- to moderate-wage workers.

and beneﬁts.
3. Start thinking about when to begin coverage. You’ll need
to choose a month to start coverage. Consider what timing

When you get insurance through the SHOP, it makes it easy for
you take advantage of other tax breaks, including the chance

would work best for you and your employees.
4. Set your budget. Think about how much money you’re able

for you and your employees to use pre-tax dollars to make your

to spend for group coverage. You’ll also need to consider

premium payments.

how much your employees can spend for their coverage.
5. Get organized. You’ll want to have basic information

There are new limits on the higher premiums insurers can
charge businesses with older employees, and an employee
with high health care costs no longer increases your group’s
premium. There are also new limits on the share of premiums
going to insurers’ proﬁts and administrative costs.

about your business organized and available, like a list of
employees you plan to cover and your tax ID number.
6. Make a list of questions you have before it’s time to choose
which health plans you’ll offer. Consider what’s most important for your budget and your employees.
7. Look for help. If you already use a health insurance agent or

The health insurance plans available in the SHOP will be run by

broker, they’ll be able to help you ﬁgure out your options.

private health insurance companies, the same way small group

Brokers sell many different insurance products and are

plans are run now. All plans will offer the same beneﬁts as a

usually paid by insurance companies. Agents work for just

typical employer plan, including real protection against

one insurance company.

ﬁnancial catastrophe.

18 < MAY 2013 | bakemag.com

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