By Malia Zimmerman | Watchdog.org
HONOLULU — Think small business owners really are going to get tax credits through Obamacare health exchanges? Think again.
Reg Baker, chief operating officer of the Hawaii Medical Assurance Association, a health care insurance company not participating on the local Hawaii Health Connector exchange, told Watchdog.org that the tax credits aren’t guaranteed.
Small businesses can only qualify to receive the tax credits for two years, there is extensive paperwork to fill out, and they will only benefit if they made enough of a profit to benefit from the tax credit, said Baker, who is also a certified public accountant.
“A great deal of effort can be spent trying to get the credit and then with the fast phase out starting at just 10 employees and the fact that it is a nonrefundable credit it results in a lot wasted time and effort,” Baker said.
The tax credit is claimed on Form 8941, which has 10 pages of instructions and contains seven worksheets.
In addition, the credit is nonrefundable, which means if a small business has little or no profit for the year, the credit is of little value. The credit can only be used to reduce the small business’ income tax amount, Baker said.
And not everyone will qualify. Owners, their families and dependents, descendants, step children, all types of in-laws and nieces and nephews are all excluded. Shareholders and partners of the company also are excluded, according to the Internal Revenue Service.
“What this means is that these individuals medical insurance premiums are excluded from the calculations thereby reducing or eliminating the credit,” Baker said. “I strongly suggest that all small businesses considering the small business health care credit consult with their tax preparer and get some advice before buying medical insurance from an exchange. It could save a lot of time, frustration and disappointment down the road.”
Baker said the small business health care tax credit was established some time ago, but it has not proven popular because of its complexity and quick phase out.
State Insurance Commissioner Gordon Ito told Hawaii lawmakers last week during a five-hour special briefing that small businesses only will be allowed to choose from the priciest plans on the local exchange.
Both individuals and small businesses eventually will be able to sign up on the exchange and compare pricing and options for 95 different dental and medical plans, but the exchange’s full launch has been thwarted by a series of technical and administrative gaffs.
Coral Andrews, executive director of the Hawaii Health Connector, told lawmakers at the Wednesday special briefing she hopes the plans and pricing will be available online by Tuesday, but she couldn’t guarantee it. Not one person in Hawaii has been able to sign up for a health care plan via the Hawaii Health Connector since its launch on Oct. 1.
Reach Malia Zimmerman at Malia@watchdog.org
- Obamacare compliance means less money for TN service agencies
- The mystery of Obamacare spending in Arkansas
- Obamacare raises questions for MD small business owners
- Kansas official on Obamacare: ‘Let someone else be the guinea pig’
- Obamacare insurance marketplace has plenty of kinks on first day
- OR’s Obamacare insurance marketplace hits technological snag
- Fail: Day 1 of the New Mexico Obamacare rollout
- Senator asks: Do you want this dysfunctional government taking over health care?
- Jobs, coverage at risk with Obamacare, MN union health official says
- Oregon’s Obamacare ads resemble middle school art
- VIDEO: Obamacare vs Affordable Care Act: Comedy triumphs in court of confusion
- Patience is key to navigating Illinois’ Obamacare marketplace
- Hawaii residents, lawmakers frustrated with health connector glitches
- Healthy young, key to Obamacare, aren’t buying it
- NM’s health exchange tries to lure ‘young invincibles’
- Obama drama: Senator blames governor for big rate hikes
- Progressive group navigates Oregon students through Obamacare
- Maddening: Trying to log onto federal health care site
- You know that one guy who successfully signed up for Obamacare? He didn’t
- What’s wrong? It’s been a week, and Obamacare website still not working
- HHS Secretary Sebelius back in FL after embarrassing Obamacare rollout
- Health centers enroll Floridians in Obamacare as application problems persist
- VIDEO: Stewart skewers Sebelius on Obamacare
- Obamacare effect? 9 companies exit Nebraska’s health insurance market
- Obamacare: Children of undocumented parents face an uncertain future
- Which way do we go? Obamacare navigator registration in TN in question
- NM health exchange tries to ease problems with Obamacare website
- CPA says hype over Obamacare small business tax credit is misleading
- Obamacare navigator under fire for arrest warrant
- Reports of Obamacare fraud emerge in Tennessee
- After two weeks, FL online Obamacare enrollees are hard to find
- Illinois state governor touts 100K Obamacare enrollees, all in Medicaid
- Kansas lawmaker calls for crackdown on Obamacare navigators
- WI health care exchange seeing few getting through
- Hawaii’s Obamacare exchange relaunches with more glitches
- We’ll know next month how many people in NM signed up for Obamacare — maybe
- Zero: Number of Nebraskans Obamacare navigators have signed up
- It took this Delaware woman 11 days to sign up for Obamacare – and she was the first
- How many people have signed up for health insurance in VA? Who knows?
- What else? NM federal health exchange ads stalled due to website problems
- Blue Cross hires temp workers to deal with Obamacare glitches
- If Obamacare is the next Medicare, will physicians leave en masse?
- Three problems that won’t be solved by fixing the Obamacare exchange glitches
- Plenty of Oregonians interested in Obamacare, but none can enroll online
- Criticize this: Obamacare premiums a near match to WI disclosures
- Report: Missourians will see sharp rise in premiums under Obamacare
- Kansas navigators say they’ve enrolled no one in Obamacare
- Obamacare too costly for rich Coloradans, Democrat congressman says
- Study: Kansas premiums to spike following Obamacare rollout
- Hang on to your candy: Creepy Uncle Sam is back
- Obamacare or bust: NM Watchdog turned back again
- Medical journals, experts refute claim that Medicaid cuts ER use
- Arkansas spends $4M on Obamacare ads, wants more
- LOL: In July video, HHS bragged about being ‘on schedule’ with Obamacare
- Illinois uses Day of the Dead to market Obamacare
- Sebelius denies GOP’s Terry ‘unreliable’ Obamacare info
- About 290,000 Washington residents lose health insurance plans
- Broken promise: Obamacare cancels almost 20,000 Kansas health care plans
- Top hospitals opt out of Obamacare
- Obamacare moves to intensive care
- Obamacare provision could lead to more Medicaid fraud
- Obamacare: Religious groups want to ‘move mountains’
- Obamacare hitting Wisconsin residents with double whammy
- Kansas AG: Obamacare threatens consumer privacy
- 1,500 in New Mexico have to move out of the high-risk insurance pool
- Cover Oregon website fiasco creates jobs, but costs millions
- For Florida’s Obamacare small business exchange, it’s crunch time
- Only 877 Wisconsinites have signed up for Obamacare, federal report says
- Just 172 in NM have completed Obamacare applications: ‘Woefully inadequate,’ says NMIX board member
- With only 346 Oklahomans signed up, leaders decry ‘Obamacare debacle’
- Defying Obamacare: ‘Send them the bill,’ NM insurance official says
- Kansas Obamacare enrollment dwarfed by nearly 20,000 cancellations
- Numbers don’t lie: In Illinois, Obamacare means Medicaid
- Wisconsin governor proposes insurance plan to address Obamacare rollout failure
- Tennesseans might know Tuesday if they can keep canceled health insurance
- People demand answers over Oregon’s Obamacare fail
- Calif. says ‘no’ to Obamacare freebies, makes own law
- HI health exchange violates federal law, League of Women Voters say
- Obamacare video winner: ‘Forget about the price tag’
- Harvard study finds ‘striking’ rejection of Obamacare by young Americans
- HI health exchange has signed up 574 people, for about $348,000 apiece
- Are the uninsured getting Obamacare coverage in Illinois?
- Secret Obamacare handbook the feds don’t want you to see is online
- Lost in translation: Once-supportive Hispanics turning backs on Obama, ACA
- HI Obamacare exchange not fiscally sustainable, lawmakers told
- Illinois’ latest Obamacare targets: gold diggers and momma’s boys
- Now Democrats are bashing California’s Obamacare exchange, too
- Obamacare: For $1.37M we get Richard Simmons in lurid web stream
- Obamacare: A welcome mat for IRS horrors
- California senator seeks audit of state Obamacare exchange
- Report: Hawaii ranks worst for Obamacare signups
- CA senator sues Obamacare exchange for causing policy cancellations of 1M
- Failure of Maryland Obamacare exchange could mean higher premiums in North Dakota
- Video: Watch Creepy Uncle Sam make it rain
- Five bright spots surrounding the Obamacare exchange failures
- Obamacare architect admitted in 2012 states without exchanges lose subsidies