Overview for Nonprofits
Nonprofits as employers
Small business tax credit for nonprofits
- 2010 through 2015
- Beginning in 2014, insurance must be purchased through an "exchange" to qualify
- Maximum is 25% of health benefit costs; 35% beginning in 2014
- Full credit is fewer than 10 employees and average wages under $25,000
- Phases out at 25 employees and/or $50,000 average wage
- Credit subtracted from income tax and Medicare withholding
- Provisions differ for for-profits
Employer benefit requirements
- Begins in 2014
- Applies to businesses with over 50 FTE employees
- Penalty is $2000 per employee (first 30 employees exempted, and penalty due only if some employees receive public benefits)
Nonprofits as medical providers
- Expansion of coverage
- Some increases in Medicaid and Medicare reimbursement rates
- Exchanges to include multistate plans offered by a nonprofit entity
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Tools and Resources on the Web
Articles, blogs, etc.
- IRS publishes rates for calculating health care small employer credit. The average premium for for the small group market in Maryland for "Employee-Only Coverage" is $4,837 and "Family Coverage" is $11,939. For more details, go here.
- Article: Federal Government Will Pick Up Nearly All Costs of Health Reform’s Medicaid Expansion by the Center on Budget and Policy Priorities. View here.
Events
In Case You Missed "Health Care Reform Session" on June 24 & 25, 2010 co-sponsored by Maryland Nonprofits at the Johns Hopkins School of Public Health view the webcast by going here.
Downtown Partnership of Baltimore, Inc. Mercy Medical Center and Downtown Partnership are offering a three-part breakfast series on health care reform and how it will impact people and businesses in real ways. Call 410.332.9290 or email vitalsigns@mdmercy.com.
Maryland Health Care Reform Coordinating Council - First Meeting - Thursday, May 6, 2010 at 1pm.
Where? The Department of Legislative Services’ Joint Hearing Room, 90 State Circle, Annapolis, MD 21401
Handouts from the Council meeting are available here.
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