A few challenges to implementing Obamacare have caused the White House to extend coverage deadlines for small businesses.
For small businesses, the main concern is for the Small Business Health Insurance Exchange (SHOP). Initially, the SHOP exchanges were supposed to be in place by January 1, 2014. Small businesses are considered those with under 100 employees – although states will eventually be able to limit the criteria to 50 or fewer in 2014 and 2015.
These exchanges will offer individuals different options of coverage based on the level of benefits. The concept is that having these options will make the coverage more affordable. And also, to increase participation of small businesses with fewer than 25 employees, tax credits may be available as well.
However, at the moment, there is only one plan available through the exchanges – of which the complete pricing is still being figured. So, most small businesses will probably offer their current plans for another year.
These delays may be frustrating. However, entrepreneurs should always be prepared and plan ahead. Therefore, make sure to stay in communication with your tax accountant for updated information as Obamacare unfolds.