5 Myths about the Affordable Care Act for Midsize Businesses

Many businesses are struggling to understand and comply with the rules of the Affordable Care Act (ACA or health care reform law). To help them, Anthem Blue Cross and Blue Shield has a number of helpful resources at www.makinghealthcarereformwork.com, like this blog article that dispels five common myths about the ACA for companies with between 51 and 99 employees.

• Myth #1: Our business is exempt from the Affordable Care Act's employer mandate.
  Companies with more than 100 full-time employees must provide health insurance to full-time workers starting this year. In 2016, companies with 51-99 full-time workers also will have to provide coverage.
• Myth #2: Most businesses of our size don't provide health insurance.
  The ACA requires midsize employers to change their existing coverage. But only a small percentage will be offering coverage for the first time.
• Myth #3: Even if we are penalized for not providing coverage, we can deduct the penalty on our income taxes.
  Companies that fail to comply with the employer mandate are subject to a penalty. But the mandate is set up as a shared responsibility fee. This makes the penalty a tax that cannot be deducted for federal income tax purposes.
• Myth #4: We can continue to offer a limited benefit or mini-med plan.
  Limited benefit plans do not meet ACA rules, so you'll need to upgrade coverage to meet the employer mandate.
• Myth #5: We will have to buy our insurance from a government website.
  The Small Business Health Options Program (SHOP) is the online health insurance marketplace, or exchange, for businesses. But using the exchange is optional. Employers can buy directly from an insurance company or use a broker at no extra cost.

 Check out theblog for more details about the ACA and other topics.