So Much For The Small Business Obamacare Tax Credit

Since 2010 there has been a tax credit for small businesses that provide health insurance to employees that is fairly substantial. Unfortunately, in 2014, if the small business owners want to keep that tax credit they will have to buy the insurance through an Obamacare marketplace. So if they like their plans, they won’t be able to keep them, or at least they won’t be able to keep the tax credit.

While the “additional information about the enhanced version” of the tax credit is not yet available on the IRS website, the Health and Human Services (HHS) website does provide some new information, and it may prove an unpleasant surprise to those businesses and employees who were counting on President Obama’s promise that if you like your plan, you can keep it (a promise he often paired with the guarantee about keeping your doctor.)  The tax credit will continue to be available and is even increasing, as the IRS website notes, but only for those businesses who purchase coverage through the government’s Small Business Health Options Program (SHOP).  In bold print, the website says: “The credit is available only if you get coverage through the SHOP Marketplace.”  …

There is no indication on the HHS website that insurance companies will be required to offer plans to businesses on SHOP that are identical to plans businesses currently offer employees.  As the answer to the question above indicates, business must “take this into account” as they make “coverage plans for 2014.” (Read More)

Another broken promise. How many does that make?