The Affordable Care Act, which is the law passed by the Congress in March 2010, is undoubtedly the most progressive law that will go a long way in creating sanity in the U.S. health sector. As the law comes into force this 2014, players in the non-profit sector are set are wondering whether it will impact negatively on their operations.
Over the past years, small employers and non-profit organizations have been paying huge sums of money toward employee insurance coverage. However, the law promises to reverse this trend and help create relief for small and non-profits. Finance analysts say small and non-profit organizations are set to be the biggest beneficiaries of the Affordable Care Act of 2013.
If you nun a non-profit organization with employees fewer than 25 and earning average annual salary or wages of an employee is less than $50,000, and that you pay premiums toward insurance covers for them, then you will qualify for Small Employer Health Credit. This special credit serves as a rebate to help small employers and non-profit organizations to meet their obligation of paying their staffs’ health insurance. Since non-profits are exempt from paying income tax according to the International Reporting Standards, the Small Employer Health Credit would act as a tax refund to non-profits on staff income tax withholdings.
As the new law begins to function, non-profits, just like small businesses, are faced with an enormous task of making hard decisions about the quality of health insurance for their employees. The Act focuses on providing cover for all types of people regardless of their pre-existing health conditions. This means a lot to employers, especially non-profits that have constrained budgets that may not afford to pay premium health coverage. The implementation of the law would require all employers, non-profits included, to comply with the provisions of availing affordable health insurance and lower an employee’s cost of insurance. Stakeholders in the non-profit sector argue that the new law, the tax credit notwithstanding, will slow charity activities of non-profits .
With the provisions of the Health Insurance Exchanges, non-profit organizations and their employees will have an opportunity to discuss the best alternative options that can guarantee affordable health insurance. This provision, according to pundits, could be the only leeway to help non-profits weigh the option of finding cheap insurance plans for their employees or raising their wages to help potential conflicts of interest in nonprofit organizations.