Blue Shield Tax/60 Day Benefits Requirement/SBA Lending

I just found out yesterday that Blue Shield will be charging a 3.8% tax on small group's [under 50 employees] health insurance premiums effective Jan 1st, 2014. This will apply to existing policies inside and outside of Covered California. What's interesting is that large groups and individuals will not be charged. It doesn't seem right to me but that is what it is [and it raises some questions].There may be another company doing this but I have not confirmed their name.

-------------------------------------------- 

AB1083  has passed the legislature and been signed by the Governor requiring that all health benefits provided by employers not exceed a 60 day waiting period for enrollment. This differs from the ACA which has a 90 day waiting period. This will take effect January 1st, 2014
 
 -------------------------------------------- 

The SBA has had a strong lending year. See below for numbers from the Acting Administrator.
 


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

---

Another Strong Year for SBA Lending in FY 2013

by Jeanne Hulit, Acting SBA Administrator

Small businesses are the engine of our economy, and they create about two out of every three net new private sector jobs in the United States. At the U.S. Small Business Administration (SBA), our mission is to make sure that small business owners have the tools they need to do what they do best—providing great products and services, creating jobs and serving America’s communities in the process.

At SBA, one of the most critical things we do is make sure that small business owners have access to the capital they need to start and grow their business. Since President Obama took office, SBA has supported more than $126 billion in lending to more than 260,000 small businesses and entrepreneurs. This includes two record years of delivering over $30 billion annually in loans in FY 2011 and FY 2012.

FY 2013 has been another strong year for SBA lending, cumulatively supporting more than $29 billion in lending to America’s small businesses. We had an incredibly successful year and are proud of the work we did to support small businesses in this country.

Let’s take a quick look at some relevant numbers:

• 7(a) loans, SBA’s flagship lending program that can be used for most business expenses including working capital, had a strong year—supporting $17.9 billion loans to more than 46,000 small businesses in FY 2013.
• The Small Loan Advantage (SLA) program, which is a key 7(a) loan initiative designed to expand access to loans under $350,000, was one of our biggest success stories. SBA has significantly reduced paperwork for the SLA program and expanded our pool of lenders—these changes have resulted in a more than 300 percent increase in SLA loans and an over 700 percent increase in the number of lenders using the program. In FY 2013, SBA backed almost 5,000 loans for nearly $745 million through the SLA program.
• CAPlines, our program that provides working capital lines of credit designed to help small businesses with their short-term working capital needs, made 682 loans for more than $500 million. In two full fiscal years since we re-designed the program, we have made 1,200 loans after only making 1,300 over 15 years—a significant increase that speaks to the success of this program.
• In FY 2013, SBA also supported more than 7,700 504 loans, which provide small businesses with long-term, fixed-rate financing to acquire real estate and major fixed assets, for a total of more than $11.7 billion. Although this is a slight decrease compared with FY 2012, this decrease demonstrates the importance of SBA’s 504 Refinancing Program, which temporarily allowed small business owners to use our 504 program to refinance commercial real estate and other fixed assets and gave SBA a record year for 504 lending in FY 2012. That program was authorized by the Small Business Jobs Act and expired in 2012, but a one year extension of the program was included in the President’s FY14 budget.

This is just a snapshot of SBA’s accomplishments in the fiscal year that just ended. We are proud of the work we are doing in helping America’s small businesses grow and thrive. Because at the end of the day, our nation’s small business owners and entrepreneurs know what to do—they just need the tools to do it—and that’s where SBA fills a critical role in helping small business owners and entrepreneurs achieve their dreams. And our neighborhoods, communities, and economy are stronger as a result.

For more information about SBA programs and services, visit www.sba.gov. For contact information for your local SBA office, visit www.sba.gov/localresources/index.html.
 

SBA Waives Fees/EDD Audits (workers compensation tests of an independent contractor)

Some very exciting news that has not gotten much coverage -- The SBA is waiving fees on loans up to $150,000.  The current fee to the bank is 2% which the bank passes on to the borrower. The way this works is that a loan of $150,000 is  85%  guaranteed by the SBA. So the business would have paid $2550. Seems strange to me that the SBA is not getting this message out.

------------------------------------------

On Friday I sent an email talking about EDD stepping up audits on independent contractors. See below the Division of Labor Standards discussion of independent contractors. What is troubling is that there is no standardized definition (see 4A and 5Q below). The IRS has somewhat of a different definition too. How can a small business owner, who is trying to play by the rules, understand if they truly have an independent contractor or an employee with varying definitions? Let me be clear, I know there is abuse by some businesses and I have no problem going after these people but the state should standardize the definition among all agencies and the IRS.
 


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

---

[Division of Labor Standards Enforcement (DLSE)]

Independent contractor versus employee

Not all workers are employees as they may be volunteers or independent contractors. Employers oftentimes improperly classify their employees as independent contractors so that they, the employer, do not have to pay payroll taxes, the minimum wage or overtime, comply with other wage and hour law requirements such as providing meal periods and rest breaks, or reimburse their workers for business expenses incurred in performing their jobs. Additionally, employers do not have to cover independent contractors under workers’ compensation insurance, and are not liable for payments under unemployment insurance, disability insurance, or social security. The state agencies most involved with the determination of independent contractor status are the Employment Development Department (EDD), which is concerned with employment-related taxes, and the Division of Labor Standards Enforcement (DLSE), which is concerned with whether the wage, hour and workers’ compensation insurance laws apply. There are other agencies, such as the Franchise Tax Board (FTB), Division of Workers’ Compensation (DWC), and the Contractors State Licensing Board (CSLB), that also have regulations or requirements concerning independent contractors. Since different laws may be involved in a particular situation such as a termination of employment, it is possible that the same individual may be considered an employee for purposes of one law and an independent contractor under another law. Because the potential liabilities and penalties are significant if an individual is treated as an independent contractor and later found to be an employee, each working relationship should be thoroughly researched and analyzed before it is established. There is a rebuttable presumption that where a worker performs services that require a license pursuant to Business and Professions Code Section 7000, et seq., or performs services for a person who is required to obtain such a license, the worker is an employee and not an independent contractor. Labor Code Section 2750.5

 

1.	Q.	How do I know if I am an employee or an independent contractor?
	A.	There is no set definition of the term "independent contractor" and as such, one must look to the interpretations of the courts and enforcement agencies to decide if in a particular situation a worker is an employee or independent contractor. In handling a matter where employment status is an issue, that is, employee or independent contractor, DLSE starts with the presumption that the worker is an employee. Labor Code Section 3357.  This is a rebuttable presumption however, and the actual determination of whether a worker is an employee or independent contractor depends upon a number of factors, all of which must be considered, and none of which is controlling by itself. Consequently, it is necessary to closely examine the facts of each service relationship and then apply the law to those facts. For most matters before the Division of Labor Standards Enforcement (DLSE), depending on the remedial nature of the legislation at issue, this means applying the "multi-factor" or the "economic realities" test adopted by the California Supreme Court in the case of S. G. Borello & Sons, Inc. v Dept. of Industrial Relations (1989) 48 Cal.3d 341. In applying the economic realities test, the most significant factor to be considered is whether the person to whom service is rendered (the employer or principal) has control or the right to control the worker both as to the work done and the manner and means in which it is performed. Additional factors that may be considered depending on the issue involved are: 1. Whether the person performing services is engaged in an occupation or business distinct from that of the principal; 2. Whether or not the work is a part of the regular business of the principal or alleged employer; 3. Whether the principal or the worker supplies the instrumentalities, tools, and the place for the person doing the work; 4. The alleged employee’s investment in the equipment or materials required by his or her task or his or her employment of helpers; 5. Whether the service rendered requires a special skill; 6. The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision; 7. The alleged employee’s opportunity for profit or loss depending on his or her managerial skill; 8. The length of time for which the services are to be performed; 9. The degree of permanence of the working relationship; 10. The method of payment, whether by time or by the job; and 11. Whether or not the parties believe they are creating an employer-employee relationship may have some bearing on the question, but is not determinative since this is a question of law based on objective tests. Even where there is an absence of control over work details, an employer-employee relationship will be found if (1) the principal retains pervasive control over the operation as a whole, (2) the worker’s duties are an integral part of the operation, and (3) the nature of the work makes detailed control unnecessary. (Yellow Cab Cooperative v. Workers Compensation Appeals Board (1991) 226 Cal.App.3d 1288) Other points to remember in determining whether a worker is an employee or independent contractor are that the existence of a written agreement purporting to establish an independent contractor relationship is not determinative (Borello, Id.at 349), and the fact that a worker is issued a 1099 form rather than a W-2 form is also not determinative with respect to independent contractor status. (Toyota Motor Sales v. Superior Court (1990) 220 Cal.App.3d 864, 877)
2.	Q.	The person I work for tells me that I am an independent contractor and not an employee. He does not make any payroll deductions or withholdings for taxes, social security, etc., when he pays me, and at the end of the year he provides me with an IRS form 1099 rather than a W-2. By paying me in this manner does it mean I am automatically an independent contractor?
	A.	No. The fact that a person who provides services is paid as an independent contractor, that is, without payroll deductions and with income reported by an IRS form 1099 rather than a W-2, is of no significance whatsoever in determining employment status. Your employer cannot change your status from that of an employee to one of an independent contractor by illegally requiring you to assume a burden that the law imposes directly on the employer, that being, withholding payroll taxes and reporting such withholdings to the taxing authorities.
3.	Q.	Does it make any difference if I am an employee rather than an independent contractor?
	A.	Yes, it does make a difference if you are an employee rather than an independent contractor. California’s wage and hour laws (e.g., minimum wage, overtime, meal periods and rest breaks, etc.), and anti-discrimination and retaliation laws protect employees, but not independent contractors. Additionally, employees can go to state agencies such as DLSE to seek enforcement of the law, whereas independent contractors must go to court to settle their disputes or enforce other rights under their contracts.
4.	Q.	When I started my current job my employer had me sign an agreement stating that I am an independent contractor and not an employee. Does this mean I am an independent contractor?
	A.	No. The existence of a written agreement purporting to establish an independent contractor relationship is not determinative. The Labor Commissioner and courts will look behind any such agreement in order to examine the facts that characterize the parties’ actual relationship and make their determination as to employment status based upon their analysis of such facts and application of the appropriate law.
5.	Q.	How can it be that the Labor Commissioner determined I was an employee with respect to a wage claim I filed and won, and the Employment Development Department (EDD) determined I was an independent contractor, and denied my claim for unemployment insurance benefits?
	A.	There is no set definition of the term "independent contractor" for all purposes, and the issue of whether a worker is an employee or independent contractor depends upon the particular area of law to be applied. For example, in a wage claim where employment status is an issue, DLSE will often use the five-prong economic realities test to decide the issue. However, in a separate matter before a different state agency with the same parties and same facts, and employment status again being an issue, that agency may be required to use a different test, for example, the "control test," which may result in a different determination. Thus, it is possible that the same individual will be considered an employee for purposes of one law and an independent contractor under another.
6.	Q.	As an employer, what obligations do I have to purchase Workers’ Compensation Insurance or comply with other labor laws for persons classified as independent contractors?
	A.	Employers often improperly classify their employees as independent contractors to avoid paying payroll taxes, minimum wage or overtime, or complying with other wage and hour requirements such as providing meal periods and rest breaks, etc.  Additionally, employers do not have to cover independent contractors under Workers’ Compensation Insurance.  However, because potential liabilities and penalties are significant it is important that each working relationship be thoroughly researched and analyzed before classifying an individual as an independent contractor and not an employee.  You should understand that the DLSE presumes that the worker is an employee (Labor Code Section 3357).  However, the actual determination of whether a worker is an employee or independent contractor depends upon a number of factors which must be considered. Consequently, it is necessary to closely examine the facts of each relationship and then apply the law to those facts. The most significant factor to be considered is whether the person to whom service is rendered (the employer or principal) has control or the right to control the worker, the work to be done and the manner and means in which it is performed.
7.	Q.	What can I do if I believe my employer has misclassified me as an independent contractor and as a result am not being paid any overtime?
	A.	You can either file a wage claim with the Division of Labor Standards Enforcement (the Labor Commissioner's Office), or you can file an action in court to recover the lost overtime premiums. In both situations, it will first be necessary to determine your employment status, that is, employee or independent contractor, before the issue of overtime can be addressed and decided. Additionally, if it is determined that you are an employee and you no longer work for this employer, you can make a claim for the waiting time penalty pursuant to Labor Code Section 203.  Eligibility for this penalty is dependent upon your employment status, as independent contractors are ineligible for the waiting time penalty.
8.	Q.	What is the procedure that is followed after I file a wage claim?
	A.	After your claim is completed and filed with a local office of the Division of Labor Standards Enforcement (DLSE), it will be assigned to a Deputy Labor Commissioner who will determine, based upon the circumstances of the claim and information presented, how best to proceed. Initial action taken regarding the claim can be referral to a conference or hearing, or dismissal of the claim. If the decision is to hold a conference, the parties will be notified by mail of the date, time and place of the conference. The purpose of the conference is to determine the validity of the claim, and to see if the matter can be resolved without a hearing. If the claim is not resolved at the conference, the next step usually is to refer the matter to a hearing or dismiss it for lack of evidence. At the hearing the parties and witnesses testify under oath, and the proceeding is recorded. After the hearing, an Order, Decision, or Award (ODA) of the Labor Commissioner will be served on the parties. Either party may appeal the ODA to a civil court of competent jurisdiction. The court will set the matter for trial, with each party having the opportunity to present evidence and witnesses. The evidence and testimony presented at the Labor Commissioner’s hearing will not be the basis for the court’s decision. In the case of an appeal by the employer, DLSE may represent an employee who is financially unable to afford counsel in the court proceeding. See the Policies and Procedures of Wage Claim Processing pamphlet for more detail on the wage claim process procedure.
9.	Q.	What can I do if I prevail at the hearing and the employer doesn’t pay or appeal the Order, Decision, or Award?
	A.	When the Order, Decision, or Award (ODA) is in the employee's favor and there is no appeal, and the employer does not pay the ODA, the Division of Labor Standards Enforcement (DLSE) will have the court enter the ODA as a judgment against the employer. This judgment has the same force and effect as any other money judgment entered by the court. Consequently, you may either try to collect the judgment yourself or you can assign it to DLSE.
10.	Q.	What can I do if my employer retaliates against me because I thought I was misclassified as an independent contractor and objected to not being paid overtime?
	A.	If you are an employee and your employer discriminates or retaliates against you in any manner whatsoever, for example, he discharges you because you question him about your employment status, or about not being paid overtime, or because you file a claim or threaten to file a claim with the Labor Commissioner, you can file a discrimination/retaliation complaint with the Labor Commissioner’s Office. In the alternative, you can file an action in court against your employer. If, on the other hand it is determined that you are in fact an independent contractor, DLSE cannot assist you as it does not have jurisdiction over independent contractors, and you would have to go to court to enforce your rights.

Workers Compensation/ Covered California

Yesterday the Workers Compensation Insurance Rating Bureau Governing committee increased its recommended increase for Jan 1 2014  from 7.8% to 9.6%. This would make the average rate for workers compensation to  $2.75 per hundred dollars of payroll. This will now go to the Insurance Commissioner for his recommendation. I am not sure what the final increase will be as the Insurance Commissioner can override this and each insurance company can file their own rates. I think I can safely say that rates will be going up but the increase will vary  depending  on the type of business.

-------------------------------------

The Board of Covered California will be meeting today. I am curious if any of you have  visited the Covered California website recently. What was your experience? Have any of you enrolled? The list of doctors is still not available creating a problem for many. The Federal Exchange program is really a mess and questions are being raised about whether it will be functioning for January 1, 2014. There also is discussion of pushing back the individual mandate because people may not be able to enroll by December 15.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Made in America

I think you all are aware that I a m a Commissioner of the California Commission on Disabled Access.  A bill by Daryl Steinberg requires that the Commission get copies of Demand Letters and Court filings . We started tracking September 2012. From September to June 2013 we had 1152 filings. From July to Oct 13^th we received another 1132. Most of these filings have been state lawsuits.

Clearly  it appears that  activity is increasing.

About 80% of  the filings are in Southern California and the top 5 suits and demand letters were around parking issues. For more information go to our website www.ccda.ca.gov

------------------------------------------

I received an email from one of our members indicating the need for people in the US to buy American made things (see 4 minute video) but the point is that  if we purchased just  5% more  American made things it would create 1 million jobs. For example, if you made 100 purchases and 20 were  American made things  you would only need to purchase one more thing and you would be at increasing  your purchases by 5%.


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Affordable Care Act

There will be some serious rules changes Jan. 1^st, 2014 for businesses providing Health Reimbursement accounts and premium only plans. I am not going to go into great detail here and suggest you contact your accountant but if you have a standalone HRA  you need to amend your plan. This means if you are not providing a group policy that meets the ACA requirements you could be jeopardizing your employees ability to get subsidized medical coverage under the Affordable Care Act.

Also if you have a premium only plan your employees will not be able to put money into the plan for purchase of health insurance on  a pretax basis. These are major changes prior to ACA implementation.

Do you have an HRA plan where you are not providing health insurance for your employees or a premium only plan where your employees are buying individual insurance?
 

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188

Made in California/Proposition 65 Lawsuits

Lori Kammerer our Government Affairs sent me this report on legislation Small Business California has sponsored or supporter. Definitely good news for small business. The Governor has until October 13^th to sign or veto bills
 
Sponsored by Small Business California, Senate Bill 12 (Corbett) was signed Oct 4 by Governor Brown to establish the “Made in California” program that will allow California manufacturers to capitalize on the state’s global and national reputation and better market their products in an increasingly competitive economic environment.  The statewide marketing strategy created in Senate Bill 12 will operate within the Governor’s Office of Business and Economic Development (GO-Biz) so that consumers are better able to recognize the high quality products developed in California.  Products that meet program criteria will be eligible to use the state-sanctioned “Made in California” label.  SB 12 will enable California’s small businesses to maintain a competitive edge against businesses that decide to manufacture out of state or out of the country.  The ‘Made in California’ marketing effort will help California’s small businesses remain on the cutting edge of work and product excellence by supporting local business owners, workers and their families in California.  SB Cal will work closely with the Governor’s Office of GO-Biz in implementing SB 12.

 Assembly Bill 227 (Gatto), strongly supported by SB Cal, was recently signed in to law by the Governor.  AB 227 will help to curb an area of abusive Proposition 65 lawsuits.  When Proposition 65 was passed, its intention was to keep California's drinking water clean and to inform consumers about certain toxic chemicals in consumer products. Unfortunately, a number of unscrupulous trial lawyers have abused the law to shake down small businesses who don't post the required warning signs.  Many of these lawyers file multiple lawsuits against small businesses, all for the same claim. Even though no one is hurt or gets sick, lawsuits are filed due to the lack of a warning sign.  Because of the way Proposition 65 is written, failure to post the required signs can lead to thousands of dollars in legal fees and fines.  AB 227 will allow small businesses to have 14 days to put up a notice (for certain types of exposures) before they could be sued. This law revision should stop some of the worst examples of abusive Proposition 65 lawsuits.

 -----------------------------------------

I've picked up Too Funny To Be President by Morris K. Udall for the 6th time. I've come across a quote from former Arizona Senator, Henry Fountain Ashurst that you all might enjoy, "when I have to choose between voting for the people or special interests, I always stick with the special interests. They remember. The people forget."

 

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

I-Bank Press Release: Governor Brown Signs Legislation to Expand the California Infrastructure Bank

PRESS RELEASE
California Infrastructure and Economic Development Bank (I-Bank)
 

FOR IMMEDIATE RELEASE                     CONTACT: Brook.Taylor@gov.ca.gov
Monday, October 7^th, 2013                                                                  (916) 322-0667
 

Governor Brown Signs Legislation to Expand the California Infrastructure Bank
I-Bank Director Announces Increased Small Business Lending

Sacramento, Calif. – Executive director of the California Infrastructure and Economic Development Bank (I-Bank) Teveia Barnes announced today that Governor Brown has signed legislation to expand the I-Bank and increase small business lending in California.

“California’s economy has seen strong recovery but the state needs more tools to accelerate the growth of a fundamental lynchpin of the economy – small business," said I-Bank executive director Teveia Barnes. “The Governor’s leadership aligns critical state resources and allows I-Bank to expand its portfolio to target and finance job creating small business projects.”

AB 1247 (Medina) transfers the California Small Business Loan Guarantee Program (SBLG) to the I-Bank which is located within the Governor’s Office of Business and Economic Development. Expanding the I-Bank to include small business lending allows the state’s most critical community infrastructure financing program to increase small business lending by leveraging I-Bank’s resources and financing expertise. This move was supported by the small business community which has pushed for more small business financing options.

“Small businesses are the job creators in California,” said president of Small Business California, Scott Hauge. “Access to capital is a major issue for small businesses especially since the recession. Many small businesses can’t grow and add jobs without capital. The transfer of the loan guarantee program to the I-Bank is a big step in making capital more available to California small businesses.”

California's Small Business Loan Guarantee Program originated over forty years ago with the mandate of providing repayment guarantees to lenders of loans to small businesses having difficulty securing financing on their own.  The guarantees are issued by non-profit Financial Development Corporations.  Currently, there are eleven Financial Development Corporations servicing the state. The Financial Development Corporations partner with community banks to help small business owners finance their plans including expanding operations, purchasing new equipment and infusing businesses with working capital.  Guarantees may also be issued on loans for start-up costs.

In fiscal year 2012-13, the program issued guarantees totaling $71,615,382 and supported the creation or retention of 5,666 jobs, including: 

• $3,000,000 for Duke Empirical to build a medical device manufacturing clean room at their Santa Cruz manufacturing facility.
• $300,000 for Patz Materials & Technologies to increase manufacturing capacity at their Benicia production facility.
• $300,000 for Prather Ranch Meat Company to expand meat production and sales at their store in the Ferry Building in San Francisco.
• $275,000 for Ginger Chocolates to purchase new equipment and open a new location in midtown Sacramento.

The addition of small business lending into the I-Bank portfolio expands an already robust program. Currently I-Bank has financed over $32 billion in economic development and infrastructure projects, including:

• $68,940,000 State Water Resources Control Board Bonds to provide additional funds for the Clean Water State Revolving Fund Program.
• $44,510,000 in tax-exempt bonds to provide funding for capital projects for the San Francisco Ballet Association.
• $43,810,000 in tax-exempt bonds to finance the Contemporary Jewish Museum.
• $40,000,000 in tax-exempt bonds to finance the development and renovation of two school buildings, a social services center and supporting facilities for the Wilshire Boulevard Temple in Los Angeles.

About the California Infrastructure and Economic Development Bank: I-Bank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy and improve the quality of life in California communities. The I-Bank is located within the Governor's Office of Business and Economic Development and is governed by a five-member Board of Directors. The I-Bank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, and leverage State and Federal funds. Find more information at: http://www.ibank.ca.gov


Brook J. Taylor
Communications and Policy
California Governor's Office of 
Business and Economic Development (GO-Biz)
1400 10th St.
Sacramento, California 95814
Office: 916-322-0667
Cell: 916-769-6487
Brook.Taylor@gov.ca.gov
www.business.ca.gov

E-Verify/Covered California/Legislative Ideas

Interesting development with the government shut down. E-Verify, which validates employee status was shut down when the government shut down. I don’t know how many of you use this but it is a real problem in Arizona and Utah as employers are required to use this before hiring. Not sure how they are going to deal with this.

Did anyone go to the Covered California website yesterday with the opening of Covered California. If so what do you think? Did anyone register for coverage?

It is time to start thinking of legislation Small Business California can introduce for legislative next session. Do you have any ideas. We are frequently contacted by legislators for legislation that will help small businesses. Send me your ideas.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

"Always looking out for you"

Health Law Guide for Business

FYI – this is the release Health Law Guide for Business sent out this morning on the opening of Covered California. Please share with your partners as appropriate.          

                                          

FOR IMMEDIATE RELEASE:     

October 1, 2013

CONTACT:

Carri Ziegler
carri@lucaspublicaffairs.com
916.492.2707 ext. 210 office
        

BUSINESS COMMUNITY APPLAUDS OPENING OF

CALIFORNIA’S HEALTH INSURANCE EXCHANGE

Individual and small group coverage begins January 1, 2014

Today’s historic opening of California’s health insurance exchange provides the promise that individuals, small business owners and their employees will have access to affordable, quality health care coverage on January 1, 2014. Individuals can shop, compare and purchase coverage starting today. Small business can shop and compare today and will be able to purchase coverage in the Small Business Health Options Program (SHOP) beginning in November.  Following are statements from Health Law Guide for Business Partners:

“The Affordable Care Act is a massive endeavor with the ultimate goal of getting as many people covered as possible. While the SHOP is important to small business, it is dwarfed by the individual market so it is understandable that Covered California needs to prioritize. Small business owners can go online or work with a broker to get quotes today, they can enroll in November and, like individuals, they will be covered beginning Jan. 1. 2014.” 

-          Scott Hauge, President, Small Business California

“There are roughly 2.5 million uninsured Californians who work for small businesses, many of which are Hispanic owned. Whether small business owners and employees get enrolled through SHOP or the individual market, once the Affordable Care Act is fully implemented, many of those who were priced out of the market will have access to affordable, high-quality health care because they’ll have options for tax credits or subsidies – that’s what’s most important and that hasn’t changed.”

-          Mark Martinez, President, California Hispanic Chambers of Commerce

“It’s the right call to take as much time as is necessary to get these marketplaces set up correctly. Health reform – like Medicare Part D – will not ultimately be judged on its first few days but on the years long project of transforming the nation’s health insurance and healthcare delivery systems.”

-          Micah Weinberg, PhD, Senior Policy Advisor, BAYAREA COUNCIL

###

Established in partnership with the Bay Area Council, California Chamber of Commerce, California Hispanic Chambers of Commerce, California Restaurant Association, California Small Business Development Centers, Los Angeles Area Chamber of Commerce, Pacific Business Group on Health, Sacramento Metro Chamber of Commerce, Silicon Valley Leadership Group, Small Business California, Small Business Majority, Valley Industry & Commerce Association and The California Endowment, Health Law Guide for Business is a resource for employers, employees and the media , providing accurate easy-to-understand information about business-specific provisions of the health care law. To learn more visit www.healthlawguideforbusiness.org.

Shutdown/ Covered California Open for Business/ Employee Notification

As I am sure you have read, Congress failed to pass a budget and the result is a government shutdown of everything but essential services.  This has not happened in 17 years. It is estimated 800,000 employees will be furloughed. It is not clear how long this will last but I am sure we are all hoping it will not be for an extended period.

Clearly this will have an impact on our economy and to many small businesses around the country. SBA loans will not be processed, tourism will be negatively impacted and consumer demand will decrease due to the uncertainty.

What do you think?

Today is the day Covered California opens for business. While you can’t purchase coverage until January 1, 2014 in the individual market you can start enrolling today. You must enroll by December 15 for coverage January 1. It is not clear what will happen with SHOP, the small group market, but we do know the calculator won’t be ready for awhile. For the individual calculator go to www.coveredca.com

Today is also the day all businesses must notify their employees about Covered California. I have sent the forms provided by the Department of Labor in previous emails. There are no penalties if you don’t do this but I strongly recommend you get this out if you haven’t already done so.



Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188