More than 16 million small business employees work in firms that will be eligible for tax credits under the Affordable Care Act (ACA), according to a new Commonwealth Fund issue brief and blog. The credits, designed to offset health insurance premium costs and help small businesses afford and maintain health insurance, are available beginning this year. Researchers estimate that by 2013, 3.4 million workers may work in firms that take advantage of the tax credit. The tax credits increase in value in 2014, from up to 35 percent of the employer's premium contribution to up to 50 percent.
"The Affordable Care Act is a big step forward for small businesses and their employees," said Commonwealth Fund President Karen Davis, one of the authors of the study. "Not only will business owners see immediate benefits from the tax credits, but owners and employees alike will be protected from steep premium increases and high out-of-pocket costs, ensuring they will have access to the stable, secure health insurance they deserve."
The issue brief is the part of a series that examines the way the Affordable Care Act will benefit different populations and groups, as well as improve insurance coverage and change the delivery of care.
