The Affordable Health Care Act created significant health care reform and has raised a number of questions in the process. Many business owners are wondering whether or not they will be forced to provide medical insurance to employees.
For those businesses that employ less than 50 full-time employees, the answer is no. There will be no penalties or fines for lack of coverage. Businesses that have 50 full-time employees or more and do not provide access to basic health insurance will be subject to penalties. The penalties were to take affect January 2014 but have been postponed until January 2015.
There are many benefits to offering employees health insurance. A healthy workforce is more stable and productive, which ultimately translates into increased revenue and net profit. The global economy has made it harder for businesses with high overhead to compete. However, health insurance and group coverage helps retain talented employees, which leads to a competitive advantage in the marketplace.
Not all businesses are required to provide health insurance for employees. However, it is a good idea to provide coverage because it can enhance the efficiency and effectiveness of operations. For additional information on health insurance in Sonoma County, please contact Sackett & Associates.