What does the healthcare bill mean for your expansion stage company?

I’m sure you are all well aware that the House of Representatives passed the Senate’s Healthcare bill on Monday night, but do you know what this means for your expansion stage company?

According to Christa Rapoport of Reuters, employers with fewer than 50 full-time equivalents (likely determined based on hours worked) will be considered small employers, and companies with more than 50 full-time equivalents will be considered large, so the first step towards compliance will be to determine how many full-time employees or equivalents your company has. Once you know your employee count, you can determine your options or penalty calculations.

For the most part, companies with fewer than 50 full-time equivalents will be exempt from mandates to buy insurance. Starting in 2014, these small businesses will be able to shop for plans offered through new state-based purchasing pools called exchanges. By pooling small businesses together, these purchasing co-ops are expected to offer rates that should be lower because of increased group purchasing power and bigger pools of insured customers.

If you are already either running or working for an expansion stage company, it is likely that your projections for growth will take you to more than 50 employees by 2014. Starting in 2014, businesses with more than 50 employees will be required to either offer healthcare coverage or pay a penalty of $750 a year per full-time employee. The coverage offered by your company will also have to meet minimum benefits, including specific service coverage and 60% of employee health costs overall, or will face additional penalties.

What effect will the healthcare bill have on your expansion stage company?