73°F
Sponsored by

ACA 101: Utah business owners are trying to find their way through insurance changes

SALT LAKE CITY, (ABC 4 Utah) – This week businesses with 51 to 100 employees were given another year to figure out insurance options under the Affordable Care Act before fines kick in.
SALT LAKE CITY, (ABC 4 Utah) – This week businesses with 51 to 100 employees were given another year to figure out insurance options under the Affordable Care Act before fines kick in.

That means the hefty fines won’t be issued until the 2016 tax year and some here in Utah say they need the two year grace period to cut through the confusion.

Ogden business owner, Chad Nay was shocked when he found out how much the cost of his group insurance plan was going up under the Affordable Care Act.

“As a small business owner, under 50 employees, the group plan under Obamacare tripled as far as cost goes of what it would cost me to cover us as a group,” said Nay.

The increased cost wasn’t an option, so he decided the best way was for the entire crew at Superior Computers to individually go to the federal marketplace, healthcare.gov, leading to more challenges.

“Now I’ve got to find a way, how do I help my guys pay for their private insurance they had to get through healthcare.gov,” said Nay.

Other small business owners with 50 or fewer employees are going with group plans through Utah’s open marketplace, avenueh.com.

“I think everyone has to look at what is the best option for them and where can they get the best value for each of their employees,” said Avenue H Director, Patty Conner.

Avenue H went online in January 2010, before the Affordable Care Act became the law.

420 groups have signed up on the state marketplace, 81 new groups joined last month alone.

Under the Affordable Care Act, Avenue H will expand to include businesses with 51 to 100 employees by 2016, when those businesses will begin being fined for non compliance, but Conner is hopeful Utah will change its definition of a small business group before then.

“We get demand every day from employer groups and brokers who want to have access to Avenue H and they are groups that are over 50,” said Conner.

Speaking of demand, Nay says the new law is taking away from what he does best.

“The thing that is frustrating to me is I’m a business owner, I’ve got customers I’ve got to take care of, I’ve got a business to run and it’s a huge distraction having to get all this taken care of,” said Nay.

Businesses with 50 employees or less are not subject to fines under the new law, but their employees are.

That’s why offering insurance can be incentive when hiring.

Businesses with 51 employees or more could pay $2000 per employee for failing to comply with the mandates of the Affordable Care Act, once the fines kick in.

Page: [[$index + 1]]
comments powered by Disqus
local-businesses.png
cars.png dixie-local.jpg

Popular Stories on Facebook