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Government Relations

Affordable Care Act

Affordable Care Act

On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act into law. This legislation, commonly known as the Health Care Law, contained several provisions which will affect small business owners and individuals responsible for purchasing their own health insurance. Several of the provisions were implemented immediately while others will be slowly phased in over the next several years.

The History of the Affordable Care Act:

  • On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act into law.
  • In June 2012, the Supreme Court ruled 5-4 that the Affordable Care Act was constitutional and could be implemented.
  • In the summer of 2013, President Obama and Congress delayed the business mandate for one year, to allow businesses to better understand the law.
  • In October 2013, the exchanges will open for individuals to begin to purchase health care.
  • In 2014, all individuals must purchase health insurance or they will face a, annual fine of $695.00. There are some exceptions for people with lower incomes.
  • On March 31, 2014 open enrollment closes.

How the Affordable Care Act affects you:

  • Uninsured or self- employed individuals will be able to purchase health care through state-based exchanges with subsides for business beginning in 2014.A state-based exchange is where people can exchange tax credits for private insurance or programs like the Children’s Health Insurance Program.
  • The map shows what exchange your state is.
  • Individuals eligible for this program are those making only slightly more than the poverty threshold of $22,050 annually.
  • Separate exchanges would be created for small businesses to purchase health care coverage beginning in 2014.
  • Insurance companies may no longer deny children’s health insurance based on a pre-existing condition. Adults will not receive the same protection until 2014.
  • Children are permitted to stay on their parent's insurance plans until the age of 26. This provision began immediately following the bill being signed into law, and is one of the few provisions in the bill that takes effect immediately.
  • Approximately4 million small businesses have an opportunity to receive tax credits for providing health care to employees. The Affordable Care Act immediately provided a credit worth up to 35 percent of the employer’s contribution to the employees’ health insurance, while non-profit organizations may receive up to a 25 percent credit. Those credits will increase beginning in 2014 to 50percent for small business employers, and 35 percent for non-profits.

Specific provisions affecting the self-employed:

Is your state is participating in the national exchange or has created it's own exchange?

Business requirements:

In early 2013, businesses received an extra year to implement the Affordable Care Act for their employees; however, there are still several requirements that must be met this year. To find out what requirements small business must meet, click here.

Click here to find out what the Affordable Care Act will specifically mean for you.

Note: The Affordable Care Act is subject to potential changes from the Supreme Court. America’s highest court has agreed to hear a challenge to the constitutionality of the legislation beginning at the end of March 2011. While it is unknown how the court will rule, constitutional scholars predict that the focus of the court case will be on the mandate that requires all Americans to purchase health insurance.  

Stay tuned for more information on the case as it develops.