July 2nd Update
Are you a business owner? Do you know a business owner? Below is important information on health insurance tax credits that businesses in Maine can apply for now. This is really important information. If you know a business owner please forward this information to them.
Have a Happy and Save 4th of July!
Thousands of Maine businesses may qualify for tax credits and assistance with costs to cover early retiree health benefits - right now…
The new health care law will affect businesses small and large, although many provisions, such as the health insurance exchanges, won’t go into effect until 2014. In the meantime, there are a number of transitional provisions of the law that could benefit many Maine businesses, including tax credits and a reinsurance program to cover the costs of early retirees’ insurance claims.
When the Patient Care and Affordable Care Act of 2010 is fully implemented, small businesses will be able to participate in a state insurance exchange, which will give them leverage to negotiate with insurers for the best price and greater accountability.
While the exchange won’t be operational until 2014, the Affordable Care Act has several provisions of interest to businesses that are already in effect. Tax credits are available for the current tax year and through 2014.
- Some restrictions apply, for example sole proprietors are not included in the program, but in general, tax credits are available for up to 35% of the premiums a small business pays for its workers.
- Businesses with 10 or fewer employees and average wages under $25,000 who cover at least 50% of the cost of coverage will qualify for the maximum credit.
- Firms with up to 25 employees and average wages of up to $50,000 are eligible for smaller credits.
- Credits are available from 2010 to 2013 and increase to 50% in 2014.
- Non-profits are also eligible for a tax benefit, with slightly different criteria.
Employers interested in applying for the credit can contact the Maine Bureau of Insurance for more information.
