Minding Ag's Business

Small business owners may escape the "pay or play" employer mandates when Obamacare reforms become effective January 1, 2014. But it's worth doing your homework now so you know which mandates apply to you as phase-in of the Affordable Care Act (ACA) law gears up.

Under the new health care reform rules, only employers with 50 or more full-time workers will be required to offer affordable health insurance coverage, or pay a fine. But almost all individual Americans will need coverage or face a fine themselves, including the boss. The new law also relies on employers to educate their workers about compliance, so you'll need to watch for important regulatory deadlines and notices later this year.

Here are five things every self-employed person can do now to prepare for health care reform.

--Read the timeline of mandates that are already kicking in this year. The National Federation of Independent Business's "Healthcare Playbook" has a summary at http://www.nfib.com/…

--Watch the status of insurance pools in your states. These are the "shopping malls" where uninsured individuals and small businesses can purchase policies which go into effect Jan. 1. They will be getting bids from insurance companies within the next month, so you'll know what to expect for 2014 premiums. Keep in mind employers purchasing insurance in their own small group market will be required to ensure their benefits meet the standards established by their respective state. The Kaiser Family Foundation's site will keep you posted on state progress at http://healthreform.kff.org/…

--Be aware that this year's head count matters. Employers with 50 or more full-time-equivalent workers must provide adequate health insurance or pay a penalty in 2014. Terms are yet to be finalized, but it appears seasonal workers weigh in the head count if they work more than 120 days per year. Part-time workers also add up to full-time equivalents if they work more than 30 hours per week.

Once you hit the 50-employee trigger, you're required to pay 60% of employee health care premiums and those of his dependents up to age 26. What's more, the employee's contribution can't exceed 9.5% of the employee's W-2 income, so employers will need to do some extra calculations to keep their plans affordable.

The current fine for employers who don't comply is $2,000 per employee, after an exemption for the first 30 workers. Someone with 60 workers would pay $60,000 per year in penalties.

--Research high-deductible, high co-pay plans to keep health care costs affordable if necessary. According to a 2012 Kaiser Foundation study, half of small firms with 3 to 199 workers imposed deductibles of $1,000 or more on their workers. Some 27% charged deductibles of at least $2,000. But these features, along with tax-preferred Health Savings Accounts, could become more popular if health care costs soar, health insurance experts say.

--Go to school. The National Council of Agricultural Employers and its affiliated organizations are holding a members-only webinar on health care reform May 15. If you're eligible, sign up.

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