There are individual tax credits available for low and middle income individuals and families to help them buy health insurance. If you are a small employer with 50 or fewer employees, you may decide to stop offering insurance and allow your employees to buy on the exchange if it is cheaper for them to get better coverage than you could afford to provide as a business. A large part of the impetus for reform in Vermont is to relieve employers of the responsibility to provide health insurance to their employees. There is no penalty attached to dropping coverage for employers with 50 or fewer workers.
Starting in 2014, these premium tax credits will be available to help individuals and families who make up to 400% of the Federal Poverty Level (currently $89,400 for a family of 4) afford private coverage by offsetting a portion of the cost of health insurance premiums. The tax credits are structured so that individuals and families will spend no more than a specified portion of their income on health insurance premiums. The size of the tax credits is on a sliding scale based on income, so people with the lowest incomes will receive the largest tax credit. You should consult with your attorney or tax professional about these credits and your potential eligibility to take advantage of them.
