Many small businesses are confused about whether or not they are required to provide mandatory group health insurance for employees. Under the Affordable Care Act (Obamacare), new health coverage requirements have been made that may affect small business owners.
 

How the Affordable Care Act changed insurance coverage for small business owners

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Generally speaking, Obamacare does not require most small business owners to offer group health insurance coverage. If the organization has fewer than 50 full-time employees, small business owners are not subject to a penalty for not providing health insurance for their employees. Many small employers opt to provide coverage anyway, in order to help them hire and retain the best workers.

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As of 2016, if the organization has 50 or more full-time employees, it is required by law to provide health insurance to all employees or be subject to a penalty.

 

Special rules and requirements may apply when employers offer coverage:

• Any plan offered by an employer must meet benefit and coverage standards defined by the Affordable Care Act.

• Any plans offered by the organization should meet the standards of affordability set forth in the guidelines of the ACA.

• Eligible employees must be offered health insurance within the first 90 days of their employment.

 

Employers under this umbrella are also subject to the Employer Shared Responsibility Payment if the coverage they offer is not affordable for their employees, or it does not meet the minimum standards.