M-F 8:00AM TO 5:30PM CST
Better coverage. Better price.

What Do the New ACA (Affordable Care Act) Laws Mean for Sole Proprietors and Small Businesses?

As of October 1, 2013, independent contractors and self-employed professionals are able to purchase healthcare coverage through online marketplaces set up by state governments. To find your online marketplace, visit https://www.healthcare.gov/.

Depending on your coverage needs, you may be able to find cheaper personal coverage through the state-run marketplaces. If you have employees and want to offer them insurance, you can visit the small-business insurance section of the website.

Here are a couple of the most important aspects of the new law:

  • As a business owner, you won't have to offer health care coverage if you have fewer than 50 employees.
  • You will personally need to have health insurance in 2014, or you'll have to pay a penalty (you're allowed to have lapses in coverage, potentially up to three months, but will ultimately need to be covered).
  • You'll need to purchase coverage that meets minimum requirements. The lowest acceptable coverage plans are called "Bronze" plans. They cover at least 60% of the average person's medical expenses.
  • Depending on the size of your family and your income, you may qualify for a subsidy on your insurance (visit the Kaiser Family Foundation's subsidy calculator for details).

Next: How Can You Get Lower Rates on Small Business Liability Insurance?

70% of businesses raise prices or cut hiring when sued