Health Care Law Ruled Constitutional

 
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Old 06-28-2012, 11:19 AM   #1
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Health Care Law Ruled Constitutional


Keeping politics out of this as much as possible so it doesn't go to the basement and all can see it, the Health Care law was ruled constitutional.

If it does not get reversed, this is what it means for small business which I believe most, if not all of us are.

"The Supreme Court decision Thursday upholds the Affordable Care Act. But as a small-business owner, you may wonder what that means for you.

Most of the law's key provisions are set to take effect roughly two years from now, on January 1, 2014.

Based on the ruling, all individuals -- including small-business owners -- must have health insurance starting in 2014, or pay a penalty.

Certainly, the cost of health insurance has become a significant issue for small firms over the past decade.

Overall, about 71% of firms with 10 to 24 employees offered health insurance in 2011, compared with 77% in 2001, according to a 2011 Kaiser Family Foundation survey. Of firms with three to nine workers, just 48% offered insurance in 2011, compared with 58% in 2001.

The high-profile decision is a blow to the National Federation of Independent Business, a Washington, D.C., lobbying group that joined 26 states in fighting the mandate. The NFIB argued that small businesses would suffer if the owners of those entities had to pay for their own health insurance. The NFIB spent more than $1.2 million on the lawsuit in 2010 alone, according to disclosures.

Here's a look at how you might be affected:

Q. What if I am a one-person business?

A. The impact for sole-proprietors and others with no employees will be much like the impact on individuals.

For people in this group, the crux of the 2014 roll-out is the individual mandate, which requires all U.S. citizens and legal residents to have health coverage or pay a penalty.

You, as a one-person business, would buy insurance through your state's benefits exchange that will roll out in 2014.

There are some exemptions, however, such as those from certain religious backgrounds and those who are eligible for the so-called "hardship exemption" if the cost of the annual premium exceeds 8% of household income.

There are penalties intended to ensure compliance. The top penalty for individuals, once fully phased in, for not having insurance is $695 or 2.5% of income -- whichever is greater.

Q. I have employees or may be hiring. What provisions impact me?

A. If you have employees, the health-care provisions are a bit more complicated.

Since 2010, firms with fewer than 25 full-time equivalent employees have been eligible for a tax break if you cover at least half the cost of health insurance. (Full-time equivalent is the number of employees on full-time schedules plus the number of employees on part-time schedules, converted to a full-time basis.)

But only if you have fewer than 10 full-time equivalent employees and average salaries of $25,000 or less is your firm eligible for the full credit. Today, that full credit is 35% of your contribution toward an employee's insurance premium. As your firm size and average wage amount goes up, the tax credit goes down. And once your business hits 25 full-time equivalent employees or $50,000 in average salaries, the credit is completely phased out.

Q. What happens to the tax credits going forward?

A. In 2014, the state-based Small Business Health Options Program Exchanges will be open to small firms. And getting insurance through those exchanges could bump the maximum tax credit to 50% of your contribution, up from the current 35%.

But the tax credits won't last. The credit is only available for a maximum of five years and only two years once the exchanges are up and running.

Q. Will I have to provide health insurance to my employees in 2014?

A. No firm is mandated to provide insurance, but in 2014, only the smallest businesses will be exempt from penalties if they don't.

Q. What are the penalties and under what circumstances would I be exempt?

A. Once your firm reaches 50 full-time equivalent employees, a penalty will kick in if you fail to provide coverage for employees who average 30 or more hours a week in a given month. The penalty is $2,000 for each full-time employee in excess of 30 full-time employees. There are no penalties if part-time employees are not offered coverage.

A key factor in calculating the penalty is that the equation isn't based on full-time equivalents, but rather on actual full-time employees. That means some businesses that are subject to the penalty may end up owing nothing.

Here's a basic example: Say your firm has 25 full-time employees and 50 half-time employees that, combined, equal 25 full-time equivalents. Your firm, in effect, has 50 full-time equivalents and would be subject to the penalty if you don't provide health-care coverage. However, your penalty cost likely would be zero because the $2,000 tally starts at the 31st full-time employee and you only have 25 full-time employees.

Q. What should I know about getting insurance for my employees?

A. You can't just buy any old insurance to avoid the penalty. You have to provide so-called "minimum essential" and "affordable" coverage. Minimum essential coverage means covering 60% of the actuarial value of the cost of the benefits. And affordable means the premium for the coverage of the individual employee cannot exceed 9.5% of the employee's household income.

If the coverage you offer is unaffordable, qualifying employees can get subsidized coverage through the tax credit on the state exchanges. In such a case, you will have to pay the lesser of $3,000 per subsidized full-time employee, or the $2,000-per-employee penalty after the first 30 full-time employees. "

http://online.wsj.com/article/SB1000...381825186.html
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Old 06-28-2012, 11:29 AM   #2
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Re: Health Care Law Ruled Constitutional


An illegals still get free coverage as always.

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Old 06-28-2012, 11:39 AM   #3
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Re: Health Care Law Ruled Constitutional


I have been buying my own insurance for years.
Now the free loaders who use the emergency room, never pay, and pass the cost on to us who do, will have to buy their own insurance also.
Yippee.
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Old 06-28-2012, 11:40 AM   #4
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Re: Health Care Law Ruled Constitutional


Quote:
Originally Posted by txgencon View Post
An illegals still get free coverage as always.
How does this happen in the USA?

In Canada, specifically Ontario where I live, all qualifying citizens and landed immigrants have OHIP (Ontario Health Insurance Plan) cards, similar to a SSN card, which has their name and number. Without it, I have to pay out of pocket for medical services (except for life-saving emergency service) or I get turned away. The new cards even have a photo like on a drivers license so that an uninsured person can't get away with using a borrowed or stolen card.

Last edited by Astrix; 06-28-2012 at 11:43 AM. Reason: grammar
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Old 06-28-2012, 11:52 AM   #5
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Re: Health Care Law Ruled Constitutional


America now taxes your heartbeat.
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Old 06-28-2012, 11:56 AM   #6
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Re: Health Care Law Ruled Constitutional


Who buys insurance? Self employed like me that has tripled in the last few years.
The illegals dont, the civil services dont. There may be more of these people in the population than private legal workers. We pay for all of them now and will not encourage employment or any citizenship by anyone.

If the youth pays for the old its playing a losing game and dont solve the problem. The window of youth is small and life expectancy goes up. To be more genius let the youth stay on mommy & daddy health care so the math is even worse.

There were some good things in the bill. It shouldnt always be all or nothing. I wish an independant had a chance in the election rather than a party.

Last edited by Tom M; 06-28-2012 at 12:03 PM.
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Old 06-28-2012, 11:58 AM   #7
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Re: Health Care Law Ruled Constitutional


lol. So much for keeping politics out.
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Old 06-28-2012, 12:02 PM   #8
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Re: Health Care Law Ruled Constitutional


sorry
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Old 06-28-2012, 12:03 PM   #9
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Re: Health Care Law Ruled Constitutional


Removed by mod for being political

Last edited by angus242; 06-28-2012 at 03:22 PM.
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Old 06-28-2012, 12:25 PM   #10
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Re: Health Care Law Ruled Constitutional


So you think this law will allow providers to turn away someone who doesn't have insurance and cannot prove they paid the tax for not having insurance?
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Last edited by angus242; 06-28-2012 at 03:23 PM. Reason: removed political quote
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Old 06-28-2012, 12:25 PM   #11
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Re: Health Care Law Ruled Constitutional


Putting aside the Supreme Court changing a fine to a tax to be able to do this, thereby changing the very nature of the law and how it was passed, there is a silver lining to all this...

You can now act as many businesses will do and dump both the government AND insurance companies...

Under this law, insurance companies are no longer allowed to deny coverage based on pre-existing conditions. This includes catastrophic health services.

So instead of forking hundreds of dollars every month over to the insurance companies, KEEP your money and INCREASE your income by thousands every year (even with paying the fine which can come out of your tax-refund) and pay your own day-to-day medical care, and if you are presented with a catastrophic illness, take out the insurance and they have to cover it...

Your other option is to take out insurance at the end of the year, saving your monthly costs throughout the year, and still allowing you to legally say that you have insurance come tax time... so no fine...

Last edited by KAP; 06-28-2012 at 12:28 PM.
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Old 06-28-2012, 12:27 PM   #12
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Re: Health Care Law Ruled Constitutional


Quote:
Originally Posted by KAP View Post
Putting aside the Supreme Court changing a fine to a tax to be able to this, thereby changing the very nature of the law and how it was passed, there is a silver lining to all this...

You can now act as many businesses will do and dump both the government AND insurance companies...

Under this law, insurance companies are no longer allowed to deny coverage based on pre-existing conditions. This includes catastrophic health services.

So instead of forking hundreds of dollars every month over to the insurance companies, KEEP your money and INCREASE your income by thousands every year (even with paying the fine which can come out of your tax-refund) and pay your own day-to-day medical care, and if you are presented with a catastrophic illness, take out the insurance and they have to cover it...

Your other option is to take out insurance at the end of the year, saving your monthly costs throughout the year, and still allowing you to legally say that you have insurance come tax time...
Yep. a whole new industry will be created to scam the system.
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Old 06-28-2012, 12:37 PM   #13
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Re: Health Care Law Ruled Constitutional


Quote:
Originally Posted by txgencon View Post
Yep. a whole new industry will be created to scam the system.
WOOHOOOO End Of Life Counseling.

Enjoy your time with your parents and kids because the Government controlls your existance..
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Old 06-28-2012, 12:42 PM   #14
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Re: Health Care Law Ruled Constitutional


removed by mod for being political

Last edited by angus242; 06-28-2012 at 03:24 PM.
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Old 06-28-2012, 12:46 PM   #15
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Re: Health Care Law Ruled Constitutional


removed by mod for being political

Last edited by angus242; 06-28-2012 at 03:24 PM.
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Old 06-28-2012, 01:04 PM   #16
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Re: Health Care Law Ruled Constitutional


.....
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Old 06-28-2012, 02:53 PM   #17
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Re: Health Care Law Ruled Constitutional


BamBam,
I see this as a good thing over all------ it doesn't go far enough in my opinion- but it is a step in the right direction.

since the US has had a system where medical care comes via the employer( instead of via the government like most other advanced countries)-- then it's time for the free loading "employers" in this country to step up and pay up like I do.

If my little business can do it-then certainley yours can do it as well-----and if everybody has to do it then no one has a unfair advantage.
stephen
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Old 06-28-2012, 03:09 PM   #18
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Re: Health Care Law Ruled Constitutional


Quote:
Originally Posted by Stephen H
BamBam,
I see this as a good thing over all------ it doesn't go far enough in my opinion- but it is a step in the right direction.

since the US has had a system where medical care comes via the employer( instead of via the government like most other advanced countries)-- then it's time for the free loading "employers" in this country to step up and pay up like I do.

If my little business can do it-then certainley yours can do it as well-----and if everybody has to do it then no one has a unfair advantage.
stephen
.......Like most other "advanced" countries?

What does that mean? That the US is not ............"enlightened"?

Show me any other country that has more "advanced" health care than the US does......does more to advance the cause of health care than the US......

I lived in Canada. I've had my opportunity to try your "enlightened, advanced, socialized" healthcare systems.

No thanks.

I'll take our broken down American system any day over that!
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Old 06-28-2012, 03:11 PM   #19
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Re: Health Care Law Ruled Constitutional


my health insurance doubled in the past two years and the benifits got worse

so I'm guessing it'll double again in the next year

thinking it might be easier just to not have it, kinda like liablity insurance, who needs that....................
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Old 06-28-2012, 03:28 PM   #20
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Re: Health Care Law Ruled Constitutional


The OP asked to keep politics of out this thread to keep it in the open. If you can't, try posting in the basement and talk politics all you want.

We don't want to censor or edit comments but if the political stuff keeps popping in, it will move.

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