Business Insurance | Bernardini & Donovan

March 12, 2015September 8, 2016

Understanding Changes To The Small Business Health Care Tax Credit

Preparing Your Small Business For Tax Season

With tax season just around the corner, small business owners must consider whether or not they will be taking advantage of the small business health care tax credit. New changes surrounding the small business health care tax credit mean that you simply cannot sign off on the paperwork from last year. To ensure that you are in complete understanding of your responsibility in regards to this tax credit, allow the following informational points to guide you:

Starting in 2014 and continuing to following years, the maximum tax credit increases to 50 percent of paid premiums for small business employers. However, the maximum tax credit increases to 35 percent of paid premiums for small tax-exempt employers.
In order to be eligible for the small business health care tax credit, you must pay premiums on behalf of your team that has enrolled in a qualified health insurance plan. These plans must be obtained through the Small Business Health Options Program (SHOP).
You can be eligible to take advantage of the small business health care tax credit for two consecutive taxable years.
To claim the tax credit, you must file Form 8941 – Credit for Small Employer Health Insurance Premiums. This will guide you through the process of calculating the tax credit.
As a small business employer, you may be eligible to carry the tax credit back or forward. In order to determine your eligibility, seek guidance from a Certified Covered California agent, such as the experienced and knowledgeable professionals at Bernardini & Donovan Insurance Services.

Rather than leaving yourself unprotected, seek the care you deserve today! Contact Bernardini & Donovan Insurance Services in Redlands for all of your California health insurance needs. As Covered California experts, you can rest assured that we will be your guiding hand in the realm of health insurance and health care.

February 19, 2015September 8, 2016

Choosing Health Coverage For Your Small Business

Understanding The SHOP Marketplace

Small business owners across the country have been experiencing change as they are now legally required to comply with new regulations and requirements under the Affordable Care Act. Since the world of health insurance and health care has transformed completely, choosing the right small business health insurance plans to best protect your team is more challenging.

If you missed the open enrollment deadline on February 15^th and are beginning to panic since you have not properly set up your small business plans, do not fret! We can still write you a policy for your small business.

A unique entity known as the Small Business Health Options Program (SHOP) Marketplace allows small business owners to obtain the coverage they are required to offer their team, despite missed deadlines. When utilizing plans offered in SHOP, you have the luxury of avoiding restricted enrollment periods and offer deadlines.

There are many benefits of utilizing the SHOP Marketplace in addition to full luxury to pick and alter coverage as you please. If you are currently satisfied with your insurance agent, feel free to enroll with them! The SHOP Marketplace does not require that you change agents; therefore, you can go through this process with the agency you trust most.

The SHOP Marketplace is the perfect way to obtain health insurance and comply with all requirements set forth by the Affordable Care Act if you have 50 or fewer full time employees. The same goes for nonprofit organizations, however, if you are self-employed you cannot utilize the SHOP Marketplace.

Please do not hesitate to give us a call if you are in need of enrolling for a SHOP plan for your small business. Contact Bernardini & Donovan Insurance Services in Redlands for all of your California health insurance needs. As Covered California experts, you can rest assured that we will be your guiding hand in the realm of health insurance and health care.

October 10, 2014September 8, 2016

Using an Insurance Broker to Successfully Maneuver the Open Enrollment Period

If you are one of the many Americans who missed Obamacare’s first open enrollment period, it is important that you start preparing so that you can be ready when the second open enrollment period arrives. If you miss this second period, you will be forced to pay a penalty for each month that you do not have health insurance. Unless you qualify for the special enrollment period, you could be paying hefty penalties for several months until the third open enrollment period arrives.

The second Covered California open enrollment period starts on November 15, 2014 and will end on February 15, 2015. During this time, you must obtain health insurance in order to avoid the penalty. During the weeks leading up to the second open enrollment period, you will want to gather all important documents such as birth certificates, proof of citizenship, etc. If you find the market exchange confusing, an insurance broker can guide you through this complicated process.

We understand how confusing the laws and regulations surrounding Obamacare can be, especially if you have never purchased health insurance before. Many individuals who are inexperienced in purchasing health insurance benefit immensely by using a broker. Insurance brokers such as the experienced brokers at Bernardini & Donovan Insurance Services guide you through each step of the health insurance process, free of charge. Our experience makes us the perfect candidates to sit down and compare varying plans and policies with you, to ensure that you obtain the most affordable policy possible.

Contact Bernardini & Donovan Insurance Services in Redlands for all of your California health insurance needs. We are extremely knowledgeable in all regulations and laws surrounding the Affordable Care Act, which is why we are the perfect team to guide you in your health insurance endeavors. We can help ensure that your health insurance complies will all new rules and regulations.

September 12, 2014September 8, 2016

How Obamacare Will Affect Your Small Business

As the various insurance implications surrounding Obamacare continue to affect both individuals and small businesses, it is important that you make sure that you are complying with the Affordable Care Act. Depending on the size of your small business and the amount of full-time employees that you have, you may be required to offer them health insurance. As we observe how recent health care reform is affecting our California small businesses, there are some trends that are worthy of acknowledgement:

Obamacare has contributed to the growth of consumer-driven health care. As a consumer-driven industry, employees and patients are acting as medical consumers and controlling how their health care allowances are spent. Since the responsibility of controlling health care choices is transferred to the employees, small business employers benefit from consumer-driven health care.
As a small business employer, it is important that you educate yourself of the various health insurance options available to you. When it comes to small businesses and health insurance, you have the luxury of offering your employees tax-free money so that they can make their own health insurance purchase.
The entire way employee benefits work is altered by recent health care reform. Rather than providing your employees with a group health insurance plan, you now have the luxury of offering your employees a health care allowance instead. If you have experienced the inability to offer your employees group health insurance in the past due to failure to meet minimum requirements, you can now offer employees this commodity, tax-free!

Contact Bernardini & Donovan Insurance Services for all of your California business’ health insurance needs. We understand that the various implications surrounding Covered California may have you confused, and that is why we are available to dispel any myths and reveal only the truth.

September 5, 2014September 8, 2016

Carrier Changes for Covered California

As the next open enrollment period fast approaches, many state insurance exchanges are preparing for the overflow of traffic. Most state insurance exchanges have begun preparing for the second Obamacare enrollment period by adding new carriers. However, Covered California did not follow the trend, rather they chose to decrease in size. Yes, you heard right!

As one of the largest states in America, many were surprised to hear that Covered California only had 13 carriers at the start of the first open enrollment period. This year, Covered California will only have 10 carriers. For any other state, 10 carriers would suffice. Of the 10 Covered California carriers, only 4 of them are major insurers with Kaiser Permanente, Blue Shield of California, Health Net, and Anthem Blue Cross.

As if your freedom of choice was not taken with the implementation of Obamacare in the first place, forcing all Americans to obtain health insurance, you now have even less choice. Many regions throughout California are forced to depend on the only insurance carrier available to them, eliminating choice altogether.

Many insurance experts are fearful of the lack of choice Covered California has provided. Since the lack of varying insurance carriers eliminates competition fears continue to rise about the success of Covered California. One main concern that many insurance experts have brought to everyone’s attention is the insurance carrier’s ability to raise prices for insurance. The purpose of Obamacare is to provide Americans with affordable health care, however, the lack of multiple participating carriers gives contributing carriers the ability to raise prices, because there is a lack of many other health insurance options.

We understand that the various implications surrounding Covered California may have you confused, and that is why we are available to dispel any myths and reveal only the truth. Contact Bernardini & Donovan Insurance Services for all of your California health insurance needs.

August 29, 2014September 8, 2016

5 Reasons The Insurance Agent Is More Important Than Ever

Despite common initial reaction to recent health care reform, health insurance brokers are still important, if not more important when it comes to the health care industry. With the majority of California residents still wondering how the Affordable Care Act will affect their lives, insurance brokers are able to help individuals and small businesses navigate through the various health insurance regulations. Gathered are 5 reasons why your insurance broker will become even more vital of an asset to you:

If you are one of the many individuals who will be purchasing health insurance for the first time, your insurance broker will be able to answer any questions you may have, and guide you through the process of successfully enrolling in health care.
Your insurance agent will be able to tell you whether or not your existing health insurance plan can become a grandfathered plan where you can keep it. You can even ask your insurance agent to help you determine which plan is the most cost effective and which provides the most benefits to you.
As a small business owner, you may be able to purchase SHOP coverage through your insurance broker. Likewise, your insurance agent can help make sure that you are following all new rules and regulations under Obamacare, and help you assess the various health insurance options.
As a small business owner, you can utilize the various benefits of having an employee benefits broker by your side. Your insurance broker will be able to manage your health care costs while ensuring that your organization complies with all rules and regulations.
Most importantly to note, your insurance agent has been in the industry far longer than any health care reform navigator, therefore, they will best be able to assist you.

August 18, 2014September 8, 2016

Does Your Business Qualify For SHOP Tax Credits?

Did you know that as a small business owner with fewer than 25 employees you may be eligible to receive a tax credit? This is only of course if you qualify to offer your employees health coverage through the Small Business Health Options Program, also known as SHOP.

The Small Business Health Care Tax Credit is typically awarded to small businesses whose full time employees make an average of $50,000 or less annually. In order to qualify, you must be willing to pay at least 50% of the premium costs of your full time employee’s health care. You will not be required to offer health coverage to your part time employees or to the dependents of your full time employees. If you have fewer than 10 employees, expect to receive the ultimate benefits. The smaller your business, the larger tax credit you can expect to receive.

Employers abiding by the SHOP qualifications can receive up to 50% of their contribution towards employees’ premium costs. As a tax-exempt employer, you can receive up to 35 percent of your contribution towards employees’ premium costs in tax credits. Remember, this tax credit is only available for those employers who have provided their employees’ health coverage through the SHOP Marketplace.

How to Qualify for the Benefits of the Small Business Health Tax Credit:

You must have 50 or fewer full time employees in order to offer health coverage through the SHOP Marketplace.
As a SHOP member, you must offer health coverage to each full time employee.
In order to qualify, about 70% of your employees must enroll in your SHOP plan.
You will need to be relatively close to a SHOP service area in order to take advantage of this program.

Bernardini & Donovan Insurance Services strives to provide Redlands, California residents with excellent insurance services custom tailored to meet your unique needs. Contact us today and allow us customize a unique health insurance package for your family based on your needs.

August 11, 2014September 8, 2016

SHOP: How It Can Benefit Your Small Business

With all the confusion surrounding the implications of the Affordable Care Act, it is imperative that you utilize all the available options as a business owner. The Small Business Health Options Program has been put in place to guide small businesses through the process of offering health coverage to their employees.

As a small business owner with 50 or fewer full-time employees, you are given the opportunity to take advantage of the Small Business Health Options Program Marketplace, also known as SHOP. If you are a small business owner with less than 25 employees, you may be eligible to receive tax credits when purchasing health coverage for your employees through the Small Business Health Options Program.

Benefits of The Small Business Health Options Program, Include:

You are in control of what coverage you offer your employees and how much you pay toward employee premiums.
Your business’ needs and your employees’ needs can be met by choosing between 4 different levels of coverage.
You can choose to begin coverage at any time. As long as you enroll by the 15^th of the month, coverage will begin on the 1^st of the following month.
As previously mentioned, as a small business with fewer than 25 employees, you may be eligible to receive a tax credit.

Qualifying Terms for The Small Business Health Options Program, Include:

Any business with 50 or less full time employees may be qualified to offer employees coverage through SHOP.
If you are interested in using SHOP, you must offer coverage to every single one of your full time employees.
If you are looking to use SHOP, you may be required to have a large majority your employees enroll in your SHOP plan. This percentage is typically around 70 percent.
You must be within the boundaries of a SHOP service area to utilize the service.

March 14, 2014September 8, 2016

Small Businesses: Your Options Outside the Exchange

The Patient Protection and Affordable Care Act of 2010, or simply the Affordable Care Act (ACA) as it is more commonly known, gives all Americans and small business owners an option to buy private health insurance through state or federally managed healthcare exchanges. The plan is designed to give uninsured and under-insured Americans a way to shop for and compare multiple plans and buy healthcare coverage regardless of financial status, age or previous medical history. The ACA’s health care exchanges are expected to radically transform the manner in which American’s purchase medical insurance. However, such exchanges are not the only option for getting coverage.

Under the ACA, all healthcare plans are required to comply with certain minimum coverage requirements regardless of whether the plans are offered via a healthcare exchange or sold directly to the consumer. All health insurance options outside the exchange have to include the same drug coverage and essential benefits as those offered via a health exchange. As an individual consumer, or as a small business owner, you have the ability to go directly to health insurance websites, insurance agents and brokers and buy the same insurance coverage that you would get via an exchange for exactly the same price.

If you live or operate a small business in Redlands, California and want to learn more about health insurance options outside the exchange please contact the health insurance specialists at Bernardini & Donovan Insurance.

January 23, 2014September 8, 2016

Employer sponsored coverage, and Covered California premium subsidy, consumers be ware!

It has been brought to our attention through various sources that consumers are being misinformed and misled when it comes to qualifying for premium assistance through Covered California. We want to address this issue, as it has the potential for severe consequences.

Employees who are offered coverage through their employer cannot receive subsidy if their employer offers “affordable” coverage. How is “affordable” coverage defined under the Affordable Care Act? To determine if the coverage is “affordable” or not, we look at the employee ONLY monthly rate for health insurance coverage. The cost to add dependents, spouse, children, etc. DOES NOT play a role in this calculation. If the employee only pays less than 9.5% of the gross household income for health insurance, the coverage is deemed “affordable”.

A simple calculation would look like this. Let’s say the gross HOUSEHOLD income is $50,000. 9.5% of the gross family income would be $4750. So, the EMPLOYEE ONLY would have to pay less than $396 per month ($4750 divided by 12 months equals $396 per month) for the coverage to be “affordable”. It is quite easy for an employer to provide “affordable” coverage. If the EMPLOYEE ONLY pays less than 9.5% of the gross household income on a monthly basis, ALL family members are disqualified from receiving subsidy through Covered California.

However, the children, based on the gross HOUSEHOLD income, may still qualify for Medicaid. Bottom line, if your employer offers you coverage, you need to check and see if it is affordable before looking to Covered California for subsidy. It is quite likely you will NOT be eligible for it.

Call us with questions at 909-792-5100.

Category: Business Insurance