Healthcare - West Virginia State Medical Association

WV Medical Insurance Agency | NEWSA Federal Tax Credit for GroupHealth Insurance: Are You Eligible?The Patient Protection andAffordable Care Act of 2010(PPACA) has many pages ofrequirements and regulations,but it also contains a way tohelp you pay for these benefits.Included in the PPACA is a taxcredit of up to 35% for employersthat pay for at least 50% oftheir employees’ premiums.The chart on page 2 shows howto determine whether your practiceis eligible for a tax credit or not. Itis good for years of 2010 through2013, and potentially through 2015,if you are in the State Exchange…..but that will be another article.If you have less than 25employees, and the average salary(not counting the owner or thefamily members of the owner) isbelow $50,000, and you pay at leasthalf of the employee’s premium forsingle coverage….. you are eligiblefor some level of tax credit. Toget the maximum 35% credit, youmust have 10 or less full-time (orfull-time equivalent) employees,AND the average annual salarymust be below $25,000. Employerswith more than 10 full-timeemployees and/or have anaverage salary of over $25,000will have a reduced amount oftax credit available to them.The credit is claimed onthe following year’s incometax form. For example, to getthe tax credit for 2010, it willbe filed with your forms thatwill be completed in 2011.To assist you in evaluatingyour current group healthinsurance plan or to aid you increating a plan design, call theWest Virginia Medical InsuranceAgency for more information.44 West Virginia Medical Journal