Vela Meets with Small Business Owners, Speaks About ACA

By Claudia Garcia | The Alice Echo-News Journal

The Presbyterian Church was packed as small business owners prepared to listen to Congressman Filemon Vela go over the Affordable Care Act (ACA).

Vela visited Alice on Wednesday and discussed how the ACA affects small business owners and their employees. Lunch was served to those in attendance that was provided by the First Community Bank.

Large businesses have 50 or more full time employees and by law must participate in the ACA. Small businesses have 49 or less full time employees and are not mandated to participate.

Vela went over the benefits beginning with the Small Business Health Options Program. SHOP is a new program that simplifies the process of buying health insurance for small businesses.

Vela said some of the advantages of SHOP is controlling the coverage offered and how much an employer pays toward employee premiums. Employers can also compare health plans online and the business can possibly qualify for a small business health care tax credit worth up to 50 percent of premium costs.

“Another advantage of course is that to the extent, you cover your employees and they're not going to be forced into the system where they're obligated to cover themselves,” Vela said.

Another plan small business owners can chose is the Qualified Health Plan. The QHP provides benefits of the ACA and includes essential health benefits such as emergency care, maternity care and hospitalization care. Purchasing the QHP may allow employers to be eligible for federal tax credits.

“Now each state will have the benchmark plan. In Texas it's the Blue Cross Blue Shield Best Choice Plan,” Vela said. “We're not going to know until Oct. 1 what all the plans are, we're not going to know exactly what's available and you won't know yet how much it's going to cost.”

He said some states may see increased cost while others will see decreases. He went over how small businesses go about getting tax credits. He said employers may qualify if they are employing 25 full-time equivalent employees making an average of about $50,000 a year or less. To qualify for Small Business Health Care Tax Credit, employers must pay at least 50 percent of full-time employees premium costs.

“Employers do not need to offer coverage to part-time employees or to dependents,” Vela said. “Starting in 2014, the tax credits is worth up to 50 percent of employers contributions toward employees' premium costs, up to 35 percent for tax-exempt employers.”

Tax credits are highest for companies with fewer than 10 employees who are paid an average $25,000 or less.

“The smaller the business, the bigger the credit,” Vela said.Employers with questions about the health programs could visit healthcare.gov.

After Vela's presentation on the ACA, he went on to give a bit of information on the Small Business Association and the loans and federal programs they have to offer. Vela said business owners can visit business.usa.gov for any federal resource for a small business just starting, looking to growing, financing or wanting to learn about taxes and credits.