Minimum Wage | Volunteers In Medicine - Teva | Go Biz Meetings

Yesterday, Small  Business California received a call from Senator Leno’s office asking our thoughts on SB 935. This bill would increase the minimum wage to $11 in 2015, $12 in 2016 and $13 in 2017. It would also have an annual increase for inflation.

In a bill passed last year, the minimum wage was increased from $8 to $9 July 1st, 2014 and again to $10 in Jan. 2016. This does not have an increase for inflation. What are your thoughts?
 

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I am very proud to be the Vice Chair of Volunteers in Medicine. We provide health services to the working uninsured using volunteer physicians nurses, dentist and lay volunteers. We have 96 clinic in 29 states. There are three clinics in California located in SF (which I co-founded), El Cajon and Coachella Valley.

We just received a substantial grant from Teva Pharmaceuticals and have become their partner in North America. Our goal is to increase the number of clinics in the US. Please see information about the Teva conference in Las Vegas last weekend. Included is a list of Clinic around the country
 

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Below my signature is the newly released list of upcoming workshops on GO-Biz’s California Competes Tax Credit. We would appreciate your help in getting the word out!

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

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GO-Biz to Host Regional Workshops on How Businesses Can Apply for the ‘California Competes’ Tax Credit

Join the Governor’s Office of Business and Economic Development (GO-Biz) for a workshop on the new California Competes Tax Credit. Small, medium and large businesses are encouraged to attend the workshop and receive instruction on how to apply for this new tax credit available from the state. The California Competes program provides upwards of $180 million in tax credits over the next two years for businesses of all sizes that want to expand or relocate to California.

Come and learn how your business can apply for new tax credits from the state. Additional details regarding the California Competes Tax Credit can be found here or for questions call GO-Biz at (916) 322-0694. Register below for the workshop in your area.

Online Webinar

Wednesday March 19^th
1:00 pm to 2:00 pm
Register Here

Tuesday, April 1^st
11:00 am to 12:00 pm
Register Here

Northern California

Wednesday, March 19^th
9:00 am to 10:00 am
New City Hall
915 I Street
Council Chambers
Sacramento, CA 95814
Register Here

Wednesday, March 19^th
5:00 pm to 6:00 pm
Redding Council Chambers
777 E. Cypress Avenue
Redding, CA 96001
Register Here

Thursday, March 20^th
9:00 am to  10:00 am
City of Fairfield
2490 Hilborn Road #108
Fairfield, CA 94533
Register Here

Bay Area

Thursday, March 20^th
1:30 pm to 2:30 pm
Oakland City Hall
Council Chamber
1 Frank H. Ogawa Plaza
Oakland, CA 94612
Register Here

Friday, March 28^th
10:00 am to 11:00 am
235 Montgomery Street, Ste. 760
San Francisco, CA 94104
Register Here

Central Coast 

Thursday, March 20^th
6:00 pm to 7:00 pm
Salinas City Rotunda
200 Lincoln Avenue
Salinas, CA  93901
Register Here

Central Valley

Friday, March 21^st
10:30 am  to 11:30 am
2331 Fresno Street
Fresno, CA  93721
Register Here

Friday, March 21^st
2:30 pm to 3:30 pm
56 S Lincoln St
Stockton, CA 95203
Register Here

Southern California 

Tuesday, March 25^th
1:30 pm to 2:30 pm
200 N. Spring Street
27th Floor - Tom Bradley Rm
Los Angeles, CA 90012
Register Here

Wednesday, March 26^th
10:00 am to 11:00 am
2500 S. Archibald Ave, Rm. 2
Ontario, CA 91761
Register Here

Wednesday, March 26^th
1:30 pm to 2:30 pm
201 S. Anaheim Blvd
Gordon Hoyt Conference Room
Anaheim, CA 92805
Register Here

Thursday, March 27^th
10:00 am to 11:00 am
402 West Broadway, Ste. 1000
San Diego, CA 92101
Register Here

GO-Biz serves as California’s office for economic development and offers a range of services to business owners. Those services include attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, important informational briefings and much more. For more information visit: www.business.ca.gov or contact Jorge.Jaramillo@gov.ca.gov.

Multi Assn Secretary Lanier to Sen Rules/ Volunteers in Medicine

On March 5th a hearing will be held for confirmation of Governor Brown's appointment of David Lanier as Secretary of Labor and Workforce Development. Small Business California will be testifying in support of Mr. Lanier at the Rules Committee. Please see the link below for the letter of support signed by 19 associations. Thank you to all the Association that agreed to sign.

 RE: SUPPORT of David Lanier as Secretary – Labor and Workforce Development Agency

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 As I think you all know, I am Vice Chair of Volunteers in Medicine. This organization sets up free clinics around the country using retired physicians, dentists, nurses and lay volunteers. We have 96 clinics in 29 states, one of which is Clinic by the Bay in SF, which I co-founded. I am excited to tell you VIM has signed an agreement with Teva Pharmaceuticals to be their partner in promoting and expanding VIM in the United States. For those that don’t know Teva, they are a huge firm in Israel and one of the largest generic drug companies in the world. They will be making this announcement at their conference this weekend in Palm Springs. VIM will be presenting at the conference.

In March,  I will be meeting with the Consulate General of Israel, Andy David  in San Francisco to discuss this this partnership.



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

Urgent Small Business Survey/ Affordable Care Act

Our survey will be closing in about a  week. I really need your help in getting the survey completed.  Please take a few minutes if you haven’t already done so to complete the survey. You can access it by going to http://www.smallbusinesscalifornia.org/

Thank you for your time

Please find updated information on the  Affordable Care Act. Small Business California has been involved in the development of this piece:
 

February 24, 2014   New Series of Fact Sheets Explains Critical Details of Health Law for Employers   Running a business is hard work and employers don’t have a lot of time to follow new laws and their deadlines. However, small business owners and their employees need to know that March 31, 2014 is the deadline for most Americans to obtain health insurance coverage or face a tax penalty. Health Law Guide for Business is here to help business owners understand their options for obtaining coverage, both for themselves and their employees.  Over the next several weeks, we will be releasing four one page fact sheets explaining the basics of the law. We will cover the potential tax benefits of providing coverage, information on the new health insurance marketplace called Covered California, penalties for not obtaining coverage, and resources that employers can share with their employees about how to get covered.  Each fact sheet is designed front and back, one side in English and one side in Spanish. The first fact sheet is a brief introduction to the Affordable Care Act for business owners, covering the most important information they need to know now.  It is available for download now.  We hope that you will print it out, review it and share it with every employer you know.  If you represent an organization of businesses, please share this free resource with your members. We hope that you will find the information useful as you decide what health care options are best for you and your employees. Once again, click here to view the first edition and stay tuned for three additional fact sheets in the next several weeks.  And as always, visit www.healthlawguideforbusiness.org for the information that employers need to know now about federal health care reform.

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

2014 SB Survey | SB935 Minimum wage: annual adjustment

Please see below, our 2014 annual survey link. This is really important for Small Business California as it sets our agenda for the year. It will take about 10 minutes or less. The results of the survey will be sent to every Assembly person, Senator, and House member in the state, the Governor, and our two National Senators. Our Manager of Governmental Affairs uses it throughout the year when working with elected officials and government people. It is also frequently referred to by the media.

2014 Survey direct link - https://www.surveymonkey.com/s/KSYR6RF

For past surveys go to www.smallbusinesscalifornia.org
 
Thank you for completing and please send out to other small businesses you know.
 

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New legislation being introduced...

An act to amend Section 1182.12 of the Labor Code, relating to wages.

LEGISLATIVE COUNSEL'S DIGEST

SB 935, as introduced, Leno. Minimum wage: annual adjustment.

Existing law requires that, on and after July 1, 2014, the minimum wage for all industries be not less than $9 per hour. Existing law further increases the minimum wage, on and after January 1, 2016, to not less than $10 per hour.

This bill would increase the minimum wage, on and after January 1, 2015, to not less than $11 per hour, on and after January 1, 2016, to not less than $12 per hour, and on and after January 1, 2017, to not less than $13 per hour. The bill would further increase the minimum wage annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commission from adjusting the minimum wage downward and from adjusting the minimum wage if the average percentage of inflation for the previous year was negative. The bill would require the Industrial Welfare Commission to publicize the automatically adjusted minimum wage.

The bill would provide that its provisions not be construed to preclude an increase in the minimum wage to an amount greater than the formula would provide, to result in a reduction in the minimum wage, or to preclude or supersede an increase of the minimum wage that is greater than the state minimum wage by any local government or tribal government.

[to continue reading, please visit the California Legislative Information website] 


What do you think about this?


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

Covered California's SHOP Halts Online Enrollment | Regulatory Fairness Hearing

On February 12th, Covered California’s Peter Lee, announced they would be shutting down the Small Business Health Option Program's online enrollment function effective Feb 12th. In a press release he said, “the SHOP portal was not meeting the needs of agents or small business and needed improvement.” It is projected to be back online the fall of 2014, according to the  press release. You will still be able to purchase insurance through the traditional paper process, working with your Certified  agent or the SHOP Service Center.
 

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On February 21st, there will be a Regulatory  Fairness Forum in Oakland at the Waterfront Hotel - 10 Washington Street, Room Regatta II. This is an opportunity to tell the National Ombudsman Brian Castro about unfair federal enforcement actions, government audits, and excessive fines or regulations.  Regulatory Fairness Board member Paul Wright will host a conversation with Oakland area small business owners and other members of the small business community. There  is no cost to attend. Should you have any questions contact Jose Mendez in the Office of the National Ombudsman 202-205-6178 or at jose.mendez@sba.gov



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

2014 SB Survey | Should Employers Provide Health Insurance?

Please see below, our 2014 annual survey link. This is really important for Small Business California as it sets our agenda for the year. It will take about 10 minutes or less. The results of the survey will be sent to every Assembly person, Senator, and House member in the state, the Governor, and our two National Senators . Our Manager of Governmental Affairs uses it throughout the year when working with elected officials and government people. It is also frequently referred to by the media.

2014 Survey direct link - https://www.surveymonkey.com/s/KSYR6RF

For past surveys go to www.smallbusinessacalifornia.org

Thank you for completing  and please send out to other small businesses you know.

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When I talk to small businesses about providing health insurance many tell me that they do not think health insurance should be linked to employment. Keep in mind, these are not necessarily people who do not provide insurance for their employees. Currently, most people in the US are covered by their employers.                      

What do you think? Should people get their health insurance through their employer? Do you provide insurance for your employees?
 

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

Small Business Development Centers/ President's State of the Union Speech/ Independent Contractors/ Survey

The President has signed the FY 14 budget and the good news is that the Small Business Development Centers, nationally have been given just over $113,600,000. This is a slight increase from this year and eliminates the sequestration cuts for the current year. As you may be aware the sequestration cut was 8%.

Now, what is important, is that California contributed money to help the California SBDCs  meet their SBA match. California is one of the few states in the country, if not the only state, that does not contribute to its SBDC program. 

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The  President gave his  5^th State of the Union speech last night. He says that this will be a year of action and that he will try to do more in taking Executive action. One of these actions is an increase in the minimum wage for Federal workers to $10.15. What did you think of the speech? Is the President heading in the right direction? Can he really do much with a gridlocked  Congress?

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I have written in previous emails that Small Business California is looking to pass legislation that would standardize the definition of Independent Contractors in California. Right now there are multiple definitions between EDD, IRS, Labor, etc. This is a real problem for small businesses. Upon reflection  we have decided to wait until next session as we want to make sure we have labor and other business organizations in agreement with the final language. We are talking to labor and they seem interested in trying to work with us.

Next week Small Business California will be sending out its annual survey. We have done this every year since 2005 and have received responses from every county in California. The results of the survey are sent to every member of the Assembly, every State Senator, the Governor , Senators Feinstein and Boxer, and every House member. I hope you will take about 10 minutes to complete the survey and will forward it to your colleagues. You can see the results of past surveys by going to www.smallbusinesscalifornia.org and clicking on surveys.
 


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

Annual Survey

Small Business California will be sending its annual survey out around the 1st of February.  Please take a look at last years and let me know what questions could be changed to make it better. I would appreciate you looking closely at the issues and advising if we have missed anything. You can access the survey by going to www.smallbusinesscalifornia.org  Click on the annual  survey tab at the top of our home page. Please get your responses back by Friday, January 24th. Could you also let me know if you would be willing to circulate the survey.
 

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Each year Small Business California recognizes people in government that have been helpful to small businesses. Please let me know if you have someone that deserves recognition. Send me their name, contact information and what they have done to further the small business cause.  I will then send a letter of appreciation from Small Business California noting your comments.  
 


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

Unemployment/ National Labor Relations Board/ Volunteers in Medicine

Because of the recent recession, California Unemployment Insurance (UI) Trust fund continues to have a deficit. As a result, it has taken loans from the federal government to pay for the state UI benefits. It had until Nov. 10th to repay the loan or California employers would be assessed with additional FUTA taxes. For the 2013 tax year, California employers will be subject to an additional 0.9% or $63 per employee. The tax is due with the annual FUTA (940) return, which is on Jan 31, 2014.

For more information about the additional FUTA taxes, please visit:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FUTA-Credit-Reduction
and
http://www.edd.ca.gov/payroll_taxes/Federal_Unemployment_Tax_Act_Tax_Increases.htm

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The California  Employers Association just sent a notice out that after a two year legal battle with employers who challenged the rule, the National Relations Board won't pursue efforts to require businesses to display a large poster advising employees of their right to unionize. This announcement was made on January 6th.

The notice that would have been required would have been an 11x17 poster and failure to do so would be considered an unfair labor practice.

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I thought you would be interested in this article about Volunteers in Medicine that appeared in the Philanthropy Roundtable’s Winter 2014 magazine. Volunteers in Medicine is the organization that takes retired doctors, nurses and lay volunteers who provide free health services to the working uninsured. I am Vice Chair of this organization and Clinic by the Bay, which I co-founded is one of the 96 VIM Clinic around the country.



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

US Chamber removes opposition to ACA/ Scam: treasury dept. of legal affairs

This week Tom Donahue of the US Chamber stated that the US Chamber was ending their efforts to block or derail the Affordable Care Act and are now focused on making this work. Interesting development and just speaking for myself,  I think this will be a lot more productive than their past efforts.
 

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I received an email from a member about what appears to be a scam. Have any of you received similar calls?

 I have just had an attempt at a phone scam purporting to come from the  Treasury Department Office of Legal Affairs.  They didn't get very far.  They claimed that if I didn't do what they wanted, the Treasury Dept would be taking enforcement action in 30 mins.  Phone number used  559 328 2394. I said "this is a scam" and hung up.  No idea what they would have wanted me to do after that

It sounded like the same people who were pretending to be Microsoft last year, though I have no proof of that. Given that tax season is on us, maybe we should get the word out.
 

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Disappointing numbers on the job front. It was announced this morning that only 74,000 jobs were added in December. Surprisingly, the unemployment rate went down from 7% to 6.7% because of baby boomers taking retirement and people dropping out of the labor force because they are not looking for jobs. What do you make of this? Is it an aberration or a signal that job growth has stagnated. Do you think the Federal Reserve should revisit their reduced purchasing of bonds?



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

SBA Regional Administrator/ Bank Lending

Donna Davis has been appointed SBAS Regional Administrator of District 9. She is taking Elizabeth Echols' place who is now running for Assembly in District 15 with Nancy  Skinner being termed out.

Donna has a strong background working with small businesses and last served as head of the Arizona Small Business Association. Small Business California looks forward to working with you Donna.

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I am always interested in hearing from small businesses about which banks are working best in your access to capital and credit needs. Which banks are making SBA loans and which banks seem to really try to understand the needs of small business? Please let me know what your experiences are.

I also am interested to find out if you think crowd funding will be helpful to your business.



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

Voters

I just got back from Renaissance weekend with my niece. What a great opportunity to meet people  and discuss issues with the foremost minds in this country and to a lesser degree people from outside the country.

I was particularly intrigued by the discussion of grid lock in Washington.  I asked a person if the voters in this country have changed over the last 50 years. I certainly understand that more minorities and woman are now voting which clearly changes voting patterns but what about voters outside this group. His response was that the media has expanded coverage so people have more information and there is more negative research. He also said that it appears there are more people voting on a single issue and their issue becomes a litmus test.

Keep in mind that most politicians given these factors are forced to vote along the lines of their constituency if they want to get elected even if it is not good policy. The Tea Party will go after those that do not hold the party line.

What are your thoughts? Do you agree with this assessment? Is there any hope this will change? Any ideas how to change this?

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Two bits of information I learned at the event are that a fire fly is a beatle and that pregnant woman have the highest survival rate of a heart attack.

Scott Hauge
President

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

Technology

Technology has clearly become a part of our business and personal lives. Do you think this is a good or bad thing.?

On one hand, it has made our lives easier and workers more productive but on the other hand, there are those that believe technology is eliminating jobs. Why hire a person when you can buy a robot?

Certainly communication has changed and improved but there are those that will say we have become dehumanized. For example in my company I have stressed that email is great but pick up the phone and talk to people. That interaction is important to build relationships. Can you build a relationship with Facebook Emails, Text messaging and Twitter?

Any other thoughts about technology?

How important are tech jobs in your community?

What is your age?
Under 30
30 to 50
Over 50
 
I hope you are enjoying the Holiday season and that  you spend time with  your loved ones. It is certainly a special time of year and a time to reflect on our blessings. All the best to you, your family and your employees  in 2014. 


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

Deadline to Enroll for Health Coverage Beginning January 2014 is Rapidly Approaching

Deadline to Enroll for Health Coverage Beginning January 2014 is Rapidly Approaching

News Release: Tax Agency Votes to Release Over a Quarter-Billion Dollars to Small-Business Owners

"Tax Agency Votes to Release Over a Quarter-Billion Dollars to Small-Business Owners

Elimination of Automatic Security Deposits at the Board of Equalization a Big Win for Taxpayers
SACRAMENTO – Michelle Steel, Vice Chair of the State Board of Equalization, announced today that the Members of the Board have voted unanimously to eliminate the agency’s automatic security deposit requirement and begin the process of releasing over $296 million to small-business owners."
To continue reading, please click here. 

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At a recent U.S. Small Business Administration (SBA) meeting, I meant someone from Prosper Funding, LLC. Prosper is a peer to peer lending program. It is an interesting alternative to the traditional loans and investing options. This is a big asset for Small Businesses since it connects you directly to an investor as the investor chooses the investment that fits them. Check it out, I had my assistant try it out and it gives you an instant quote by plugging in basic criteria. 

Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA  94116

shauge@cal-insure.com

415-680-2188 

CA Unemployment Insurance Program

Our Manager of Government Affairs, Lori Kammerer put this piece together on the Unemployment Insurance Program. Small Business California has been part of the working group. Read below and let me know if unemployment insurance would be an issue for you if it increased dramatically.

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California's Unemployment Insurance Program – is the insurance fund that pays state jobless benefits and is run by the Employment Development Department (EDD).  EDD owes nearly $10 billion to the federal government because the state has been paying more in jobless benefits than it has been receiving in employer-paid taxes.  The federal government has been paying the difference since 2009, including penalties and interest.  It is expected that California won’t be able to pay off the debt for at least 10 years, so the Governor and Labor Agency Secretary convened an advisory group comprised of management and labor to figure out a way to pay for the employer-financed program and pay off the debt…click here to continue reading.

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I thought it might be helpful to put the timeline for individual coverage under Covered California. 
2013
December 23rd - last day to enroll for coverage effective Jan. 1st, 2014

2014
January 15th - last day to enroll for coverage effective Feb. 1st, 2014
February 15th -  last day to enroll for coverage effective Mar. 1st, 2014
March 15th - last day to enroll for coverage effective Apr. 1st. 2014
March 31st - last day to enroll for coverage effective May 1st, 2014
December 15th - last day to enroll for coverage effective Jan. 1st, 2015
*Open enrollment for 2015 begins Nov. 15th, 2014 and lasts until Jan. 15th, 2015

2015
January 15th - last day to enroll for coverage effective Feb. 1st, 2015

*These dates are subject to change by Covered California. 

You cannot enroll for individual coverage in the Months of May through the end of year except for special circumstance like change in family status and job based healthcare.
I want to thank Micah Weinberg, PhD from Bay Area Council for helping me with this.
 

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I don’t usually talk about my company but being that Small Business California was involved in the creation of B Corps in California, I am pleased to tell you CAL Insurance is now a B-Corp. Just got word today that we passed the test for this designation!


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

REGISTER: GO-Biz CA Competes Workshops

Please find below an announcement of meetings and webinar regarding the California Competes Tax Credit program. There is special consideration for small businesses under $2 million in receipts.


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

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Governor’s Office of Business and Economic Development (GO-Biz)



REGISTER TODAY
GO-Biz to Hold Statewide Workshops on California Competes Tax Credit
 

The Governor’s Office of Business and Economic Development (GO-Biz) will hold public workshops to solicit input on the draft regulations for the California Competes Tax Credit program, an income tax credit available to businesses that want to expand, relocate or stay and grow in California. At the workshops, GO-Biz will provide an overview of the enacting legislation, discuss the draft regulations and welcome feedback from the community. Additional details regarding the CA Competes program and the upcoming workshops can be found here.

Please REGISTER below for the workshop in your area.

San Diego Area – Dec. 17th 
10 a.m. to 12 p.m.
San Diego City College Corporate Education Center
1551 C Street
San Diego, CA 92101
Register: HERE

Inland Empire – Dec. 18th 
10 a.m. to 12 p.m.
Norton Regional Center
Inland Empire Economic Partnership Auditorium
1601 East 3rd Street
San Bernardino, CA 92408
Register: HERE

Los Angeles Area – Dec.19th 
10 a.m. to 12 p.m.
Glendale Community College
1500 North Verdugo Road
Glendale, CA 91208
Register: HERE

Online Webinar – Dec. 20th 
10 a.m. to 12 p.m.
Register: HERE

GO-Biz serves as California’s office for economic development and offers a range of services to business owners. Those services include attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, important informational briefings and much more. For more information visit: www.business.ca.gov or contact Jorge.Jaramillo@gov.ca.gov.

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Affordable Care Act [ACA]

Over the last week I have found that there is a lot of misunderstanding about the ACA or lack of knowledge exist about the ACA. Let me state some information that may be important to you.

1. The ACA defines full time employees as 30 hours. If you have a group health plan you must offer coverage to  anyone that works 30 hours with some exceptions. Many small businesses in the past have defined full time workers as above 30 hours. This changes Jan 1st, 2014.

[Note: you can reduce the definition of full time to 20 hours but this is not required under ACA. You cannot provide on your group plan employees who work less than 20 hours.]

2. An employer cannot pay for an employee’s individual health policy and have the payment be on a pretax basis. This was not the case prior to ACA.
3. If you provide coverage for employees on your group policy you are not required to provide dependent or spouse coverage. Each case needs to be looked at closely but if you have less than 50 employees you may not want to offer coverage as that will disqualify the spouse and dependents from receiving any subsidies from Covered California. If you have 50 or more employees you are required to offer coverage to dependents.
4. If you have a Health Reimbursement Account (HRA) and your employees have money  in the HRA,  which provides coverage for some Minimal Essential Benefits,  the employee will not be eligible for subsidies in Covered California. This becomes effective Jan 1st, 2014.

[Note: Minimal Essential Benefits do not include Dental and Vision. These are called Excepted Benefits]

5. Individuals who purchase health coverage from Covered California and are eligible for subsidies receive the subsidy based on the Silver Plan. The individual  then has the option of purchasing a Bronze, Silver, Gold or Platinum with the Silver plan subsidy.

Under the Small  Business Health Option Plan [SHOP], the employer chooses the Metal level and the employee must choose the option available only at that metal level.

What questions do you have about ACA?

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Last week I sent out a survey about  employer health coverage. Thank you to all that responded. The most interesting results were about 15% of the respondents said they would be dropping their health insurance. Very few people responded to the question of whether they felt their employees would buy individual  coverage but everyone one that did did not think their employees would purchase coverage. 


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

Health Insurance Questions

I need your help in answering a few questions. Please take just a couple of minutes to answer. As I speak frequently about the Affordable Care Act I frequently get asked these kind of questions,

1. Do you provide health insurance to your employees?
2. Do you intend to keep group health coverage for your employees?
3. Do you provide for dependents?
4. What percentage of the insurance cost do you pay?
5. Do you plan to drop your health insurance?
6. If you haven’t provided health insurance do you plan to buy health insurance in 2014?
7. If you don’t provide coverage do you think your employees will purchase  health insurance as required by the Affordable Care Mandate?

 Thank you


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