Small businesses and self-insured individuals are liable for an Affordable Care Act fee that will add 2 to 2.5% to their health insurance premiums this year, according to the Wall Street Journal, http://tinyurl.com/m64n28j The fee does not apply to employers who self-insure. The fee is also not deductible from individual or corporate taxable income.
What does this mean for your business growth and plans? If you can manage to self-insure some of your health costs, and to buy “stop loss” cover for amounts over the self-insured range (say, $1 million for all claims against a company, with reinsurance carriers covering amounts above that self-insured range), your costs may be lower than those for businesses in the “small group” market. Self-insured companies also can design their own health plans, and are simply required to provide “adequate” cover to their employees, not plans meeting SHOP or individual marketplace mandates. Similarly, your company may be a more attractive acquisition target if its health and benefits costs are well managed and predictable.