California's Health Exchange: What It Means for CA Small Businessess

The California Chamber of Commerce today released its latest edition of CalChamber News featuring information about Covered California, the state’s health exchange.  Covered California is the first-in-the nation online health insurance marketplace established under the Affordable Care Act.  It will help individuals and small businesses compare health plans, get answers to questions, find out if they qualify for federal tax credits and enroll in a plan that meets their specific needs.

Designed to offer small businesses and their workers simplicity and a chance for affordable health coverage, Covered California aims to level the playing field and offer employers better choices at lower costs. Covered California will provide California small businesses one more avenue to maintain a healthy, productive workforce.A key part of the Affordable Care Act, Covered California will go live in January 2014 but many small businesses still have questions about the marketplace as well as their options and obligations. In this installment of CalChamber News, Peter Lee, Executive Director of Covered California, clarifies what small businesses (2-50 employees) need to know about the state’s new insurance marketplace.

Health care reform “is a mammoth challenge,” says Lee. But, purchasing insurance will be “easy relative to how complicated buying insurance has been in the past.”

In response to questions posed by small business owners Patrick Mulvaney of Mulvaney's Building & Loan and Marco Rodriguez of MVP's Sports Grill, Lee explains:

• Small businesses don’t have a mandate to offer health insurance.
• Small businesses will be able to purchase insurance through Covered California’s marketplace or on the open market.
• Small businesses will be able to choose how much coverage they want to provide but then let employees pick the right plan from a range of options that fit them best.

Additionally, small businesses purchasing coverage in Covered California’s Small Business Health Options Program (SHOP) will be able to continue to use their brokers and some will be eligible for federal tax credits.

According to Lee, getting everyone insured through the Affordable Care Act and having a system about better care and prevention will help to reduce health care premium costs over time.

Launched last year, CalChamber News covers issues affecting employers in the state. This is the third of a four part video series produced in partnership with Health Law Guide for Business to educate employers about the implementation of the Affordable Care Act in California. To view the video, visit, www.calchamber.com/calchambernews.

Author: Gail Cecchettini Whaley

HR Watchdog, HRCalifornia’s Employment Law Blog, © California Chamber of Commerce