By Michelle Stockman/Arkansas Capital Corporation, Fayetteville

Health care is one of the great challenges aspiring entrepreneurs face when making the leap into business ownership. Health care premiums for the self-employed and their families are steep. In weighing inadequate or non-existent coverage over a salary with benefits, many consider it reason enough to keep punching the proverbial clock.

What does the Affordable Health Care for America Act (HR 3962) mean for small businesses? The overall health care bill focuses on providing health care coverage to all U.S. citizens. However, there is confusion about who is responsible for the coverage, and when the legislation will be implemented. The following summarizes the major points to the new legislation:

• Businesses with 50 employees or more will need to provide a health care coverage plan to all employees.
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• Individuals who are not covered by an employer must acquire health care coverage either through purchasing a plan for themselves or carry the government program.
• Those not willing to carry health care coverage will be fined by the IRS at $95 or 1% of the individual’s income. The penalty is set to rise in 2016.
• Families will be allowed to keep their children on employer-run programs until they obtain their own coverage or turn 26.

While the legislation has been passed, the full program will be phased in as the government needs to work out implementation details. Here are major milestones of which to be aware:

• 2014 is the timeframe for when the government will begin providing tax credits to help low income individuals pay for health insurance premiums. The aid will be available on a sliding scale.
• 2014 is when all health insurance companies will have to take all applicants, and will not be able to deny anyone coverage.
• Starting immediately, health insurance companies will not be allowed to cancel coverage if one were to get sick. Lifetime dollar limits on coverage will now be banned as well. Additionally, insurance companies will not be allowed to deny coverage to children due to “pre-existing” medical conditions.

Michelle Stockman works with Little Rock-based Arkansas Capital Corp. to promote entrepreneurship development in Northwest Arkansas and around the state. She successfully implemented the first statewide entrepreneurship development system in North Carolina, and has opened Arkansas’ first community entrepreneurship center. Email Michelle at mstockman@arcapital.com.