Affordable Care Act: Milestones for America’s Small Businesses

balance-335980_12802010 – The Affordable Care Act Becomes Law

  • Many small businesses become eligible for a tax credit worth up to 35% of the employer’s contribution to the employees’ health insurance (up to 25% for tax-exempts) to help them provide insurance benefits.
  • A new Patient’s Bill of Rights goes into effect, addressing the worst abuses of the insurance industry.

2011 – The Affordable Care Act Holds Insurance Companies Accountable

  • To ensure premium dollars are spent primarily on medical care, the law’s “80/20” rule requires that at least 80% of premium dollars collected by insurance companies must be spent on benefits and quality improvement.
  • Another tough reform requires insurance companies to publicly justify premium rate increases of 10% or more, holding insurers accountable to the small businesses they serve, which has led to a sharp decline in double-digit rate hikes.  To date, these two protections alone have already saved small businesses and consumers more than $2 billion.

Continue reading