Small Businesses Not Reaping Health Care Reform Benefits

Tanya Sinkovits

ST. LOUIS, Mo. (KMOX) — Turns out a large number of Missouri small businesses are not taking advantage of President Barack Obama’s health care reforms.

Thomas McAuliffe with the Missouri Foundation for Health blames confusion, lack of knowledge, and plain denial.

“I don’t think businesses fully understand what is in the law, and how it can help them,” McAuliffe said.

There are about 85,000 small businesses in Missouri that are eligible for the Small Business Health Care Tax Credit, and according to McAuliffe only 50 percent of those businesses are actually reaping the benefits.

McAuliffe says small businesses of 25 or fewer employees who offer insurance and pay 50 percent of the cost for that insurance can apply for a tax credit. That credit will reimburse the employer upwards of 35 percent of the cost. Next year and the year after that the credit will reimburse employers nearly 50 percent.

How do businesses apply for the credit?

McAuliffe says it is just like a normal tax credit, which must be applied for when filing your taxes.

He suggests going to a tax preparer to make sure the credit is filed properly, and to get more information about other benefits the health care reforms may offer.

McAuliffe said the number one idea small businesses in Missouri need to understand is the health care reforms passed last year are not going away.

“I think there is a certain sense in which people don’t understand the law and they dismiss the law thinking it will go away,” McAuliffe said. “So they’re not thinking, how can I take advantage of this.”


Related:

Small Business Health Care Tax Credit: FAQ

Listen to Thomas McAuliffe’s full interview below:

Copyright KMOX Radio

Comments

One Comment

  1. depuy hip  says:

    Your posting is quietly written and simply clear as well. Thanks. Wil wait for your next post.

  2. www.cooperativehomecare.com says:

    There still need to be changes to this health care reform for small business that don’t fit into the tax breaks mentioned above.

    For instance, the home care company I work for provides benefits for its 50+ admin staff, which they deserve and earn as full time employees. The new reform however will REQUIRE us to provide a health care plan for all 400+ of our part time care givers. We have a plan in place where caregivers can buy into our insurance plan if they so choose and think it is in their best interest to do so. But to require us to cover all our part time employees who will not be able to generate enough profit for us to cover our cost is a death sentence for our company. If we don’t provide their insurance we will get fined thousands of dollars per employee per year. This will only serve to put out more small time home care companies and increase the power of behemoth national companies.

    This isn’t the purpose of ‘reform’ and we need to be open to adapting so small business don’t carry the brunt of costs.

    1. Katty says:

      Way to go on this essay, heepld a ton.

  3. Jim Lochhead says:

    There still need to be changes to this health care reform for small business that don’t fit into the tax breaks mentioned above.

    For instance, the home care company I work for provides benefits for its 50+ admin staff, which they deserve and earn as full time employees. The new reform however will REQUIRE us to provide a health care plan for all 400+ of our part time care givers. We have a plan in place where caregivers can buy into our insurance plan if they so choose and think it is in their best interest to do so. But to require us to cover all our part time employees who will not be able to generate enough profit for us to cover our cost is a death sentence for our company. If we don’t provide their insurance we will get fined thousands of dollars per employee per year. This will only serve to put out more small time home care companies and increase the power of behemoth national companies.

    This isn’t the purpose of ‘reform’ and we need to be open to adapting so small business don’t carry the brunt of costs. We try to be a local resource for people living in St. Louis and we need health care reform that doesn’t stack the deck against. If your curious about what we do http://www.cooperativehomecare.com/

  4. Jhett says:

    Thank you so much for this atrilce, it saved me time!

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