Affordable Care Act (Healthcare Reform) and Multicultural Populations cont.
We continue our 12 part blog series on the Affordable Care Act and Multicultural Populations.
Introduction to Small Group Health Care – Part 7
By Martha C. Rivera, Director, Strategy and Insights, and Alejandro Ramos-Martinez, Junior Executive
Across America, small businesses are the cornerstone of state and local economies. They employ millions of workers; create more than half of our private, non-farm gross domestic product; drive innovation; and contribute to our communities in large cities, suburban settings, and rural towns. Despite these strengths, small businesses often operate with thin profit margins and, partly as a result, are less likely than big businesses to be able to offer health coverage to their workers. Multicultural populations own an important part of the U.S. small businesses, with Latinos representing the fastest growing group. In 2010, the Census Bureau reported that Hispanic-owned small businesses had arrived to a milestone number of 2.3 million across the U.S., representing an increase of 44% from 2002 to 2007, while the overall growth rate was 18% in the same time period.
To address the challenges of small businesses on offering health insurance to their workers, Congress included, in the Affordable Care Act, a significant new tax credit for small business owners who provide their workers with health insurance. Under this new tax credit, businesses that have fewer than 50 workers and average wages of less than $50,000 are now eligible to receive a tax credit of up to 35 percent of the cost of the health insurance that they provide for their workers. To qualify for the tax credit, small businesses must cover at least 50 percent of each employee’s health insurance premiums. In 2014, the size of the credit will increase to cover up to 50 percent of the cost of health insurance provided to workers
Look for Part 8 of ourAffordable Care Act and Multicultural Populations in a future blog.