Health Insurance Subsidies Available for Small Businesses
The Hawaiʻi Department of Labor and Industrial Relations (DLIR) received $428,864 in federal funds to help augment the Prepaid Health Care Premium Supplementation Trust Fund (PSF). The PSF allows eligible small employers to receive partial reimbursement for health care BIN SYLE ONE WORD premiums that have been paid during a business year. Since 2011, the PSF has paid out over $2 million.
On Friday, Dec. 30, 2016, Hawaiʻi was granted a waiver from the Federal Affordable Care Act requirement that a Small Business Health Options Program (SHOP) operate in the state. As a result, the related Federal Tax Credit previously available was terminated for plan years beginning after Saturday, Dec. 31, 2016. In place of the tax credit, Hawaiʻi will receive federal funds of approximately $2.7 million for plan years beginning Sunday, Jan. 1, 2017 through Friday, Dec. 31, 2021.
Section 393-45 of the Prepaid Health Care Act (PHC) details the requirements small employers must satisfy in order to qualify for a reimbursement. The requirements are as follows:
- The employer employs less than eight employees entitled to PHC coverage.
- The employer’s healthcare plan is approved by DLIR.
- The employer’s share of the premium cost for eligible employees (single coverage only) must exceed 1.5% of the total wages payable to such employees and the amount of the excess must be greater than 5% of the employer’s income before taxes directly attributable to the business.
In addition, the reimbursement is only for plan years beginning Sunday, Jan. 1, 2017.
For more information on how to apply and obtain a claim form (HC-6), visit the DLIR website.
For additional questions or information, call (808) 586-9239 or email the PHC office at [email protected].