Saturday, May 22, 2010

Some Small Businesses Feel Misled by Obama Health Care Law

This employer found that there was no benefit even though he was told help was on the way. I also checked the closing of the Part D Donut Hole for drugs for retirees. This year $250 of the $3,500 hole is given as a rebate, whereas in 2011, the drug companies have to reduce the price of their drugs by 50%. In ten years the companies have to close the hole completely. This agreement was made with the companies under threat of more adverse regulations.

If you are a small business owner with health care costs out of control,or just someone interested in how the ObamaCare effects you, try this calculator here.

Zach Hoffman was confident his small business would qualify for a new tax cut in President Barack Obama's health care overhaul law.

But when he ran the numbers, Hoffman discovered that his office furniture company wouldn't get any assistance with the $79,200 it pays annually in premiums for its 24 employees. "It leaves you with this feeling of a bait-and-switch," he said.

When the administration unveiled the small business tax credit earlier this week, officials touted its "broad eligibility" for companies with fewer than 25 workers and average annual wages under $50,000 that provide health coverage. Hoffman's workers earn an average of $35,000 a year, which makes it all the more difficult to understand why his company didn't qualify.

Lost in the fine print: The credit drops off sharply once a company gets above 10 workers and $25,000 average annual
Read article here.

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