With the new healthcare laws set to take effect in January 2014, more small business owners may want to consider taking out a small business loan to cover the rising costs of health insurance. According to a recent CBS News report, many entrepreneurs with a workforce of more than 50 employees are especially worried about how the Affordable Care Act will affect their enterprise.
The ACA mandates that any employer with 50 or more staff members must offer all full-time workers and their dependents minimum employer-sponsored health insurance coverage. Under the new law, a full-time employee is defined as a staff member that works 30 or more hours a week for the organization. Employers that do not supply these benefits to their workers face paying a penalty of $2,000 a year per each non-insured employee.
Small business owners unsure of how to comply, budget new expenses
As the tenets of healthcare reform can be confusing, some small business owners are concerned that they lack clarity on how to comply with the new laws and fear facing fines.
“We want to do the right thing,” small business owner Hans Rockenwagner told CBS. “Give us the pertinent information so we can educate ourselves on what we need to do.”
Other small business owners are anxious they will not be able to afford the new costs and fear that paying for their employee’s healthcare benefits will hurt their bottom line.
According to a U.S. Chamber of Commerce survey, 75 percent of small business owners believe healthcare reform will increase their expenses.
Although ACA proponents have said anxieties arise anytime a new law is passed, some lawmakers have become the voice of small business concerns in Congress. Like Sen. Max Baucus (D-Mont.) – who incidentally helped put together the healthcare law and referred to the reforms, if they are not implemented correctly, as a “train wreck coming down” at a recent hearing, CBS reported.
Despite uncertainties, the full-scale implementation of the ACA is set for January 1, 2014 and small businesses need to be prepared.
As healthcare reform leads to new healthcare-related expenses it may require small businesses to come up with some extra funding. Employers, who opt not to extend coverage to employees and pay the penalty fine instead, may want to obtain capital to cover the fees. Small business owners in need of a loan or merchant cash advance can contact National Funding to learn about what financing options are available.