How reform affects you

What you need to know about how your family will benefit, what you'll really pay, whether you'll get better or worse care, and what could go wrong from here.

2 of 4
Small-business owners
Small-business owners
Ages: 42, 47
Income: $130,000
Work status: Business has six employees
Insurance: Individual policy
What's changing:

Within a year:
  • They'll qualify for a temporary incentive for small-biz owners to provide health coverage to their employees because the average wages of their staff are less than $50,000 and they have fewer than 25 full-time workers.
  • They'll be entitled to a tax credit for their company worth up to 35% of the cost of premiums for the plan.
  • They must pick up at least half of the tab for their employees' coverage to get the credit.
By 2014:
  • The couple can buy coverage for their staff on a state exchange.
  • If they do, the company will qualify for a tax credit worth up to 50% of the premiums.
  • They won't be fined if they don't provide coverage because their business has fewer than 50 employees.
  • If they decide not to offer health benefits, they won't be eligible for a subsidy on their individual policy because of their high income. They'll likely pay 5% to 10% more than they do today.
The bottom line: If these owners decide to buy a small group plan on their state exchange, they'll pay less than they would for such coverage today because they'll qualify for subsidies.

NEXT: A well-off couple with benefits
Email | Print | Share
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
Last updated April 21 2010: 5:35 PM ET
Source: Milliman
Premium rise assumes no increase in benefits; moderately regulated state
More Galleries
Our biggest money highs and lows How much money do you need to feel rich? What are your biggest money mistakes? Money magazine surveyed 1,000 Americans for the answers to these and other questions. See how your answers stack up. More
How we feel about our finances Participants in an exclusive Money magazine survey reveal how they feel about their finances. Although the Great Recession may be over, they're not all that confident about their prospects for the long run. More
8 ways to cut your tax bill To keep your tax bill as low as possible this filing season, you need to stay on top of all the ways the rules have changed. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.