My Payday Loan My Payday Loan


May 2016
« Jun    

Obamacare: More Small Businesses Plan to Pay the Penalty

An Obamacare provision that goes into effect next year requires businesses with 50 or more full-time workers to provide health care coverage for employees. For businesses that don’t, there is a $2,000 penalty for each full-time worker above the 30-employee threshold. (Full-time workers are defined as anyone who works more than 30 hours a week in a given month.)

Rick Levi, owner of Consolidated Management, a Des Moines, Iowa-based company that runs cafeterias at schools, offices and jails in 10 states, told the Journal the penalty is all he can afford. He employs 102 workers and will be required to offer coverage to many under the new law, at a cost of more than $500,000 per year if every employee takes the insurance plan. The penalty will cost him around $144,000.

Currently, the food services company pays approximately $140,000 to provide coverage for 25 managerial staff, Levi said, leaving dozens of other workers on their own to find health insurance. When reached by phone on Monday, chief financial officer Rick Larson told The Huffington Post that the company does not track how those employees obtain health care insurance. The company does provide access to some limited-benefit plans, like Starbridge, for workers not covered under the company’s health care plan, Larson added. These kinds of limited health care plans can reduce rates on basic medical services, but are not considered full insurance plans

Small Businesses Opt To Pay Obamacare Penalty Instead Of Offering Health Insurance

Do you have a small business? Tell us about it in our discussion forum!

Related posts:

  1. Small Businesses Struggle With Obamacare Rules
  2. Will Small Businesses Self-Insure to Save Money on Health Insurance?
  3. Small Businesses: Is High-Deductible Health Insurance the Answer?
  4. How Does a Real Small Business Cope With the New Health Insurance Requirements?
  5. Is Obamacare Good for Small Businesses? You Make the Call…

Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>