What Hotel Executives Need to Know About Health Reform
By Michael Mahoney Vice President of Consumer Marketing, GoHealth | December 09, 2012
The hotel sector of the hospitality industry is vast, to be sure. Some of you have positions at well-established, corporate legends in the hotel space. Typically, hotels of this stature offer impressive employee benefits packages, including health insurance. For those of you working at an equally fabulous, yet smaller-scale establishment, a benefits package may not be part of your vocabulary yet.
Whether you are the proprietor of an independent, boutique hotel or an executive at a five diamond resort, one thing is probably true – you don't know exactly what this whole health reform thing means for your business.
Running a successful hotel is already a challenging endeavor. Are things about to get even more hectic now that the Supreme Court has upheld the majority of the Affordable Care Act? The answer is… not necessarily.
Knowledge is power, friends! Let's use this mass confusion to join forces and learn a little something about health insurance and reform. Besides, you need to know this stuff by 2014 (when the law officially takes full effect), anyway. Might as well just rip that band-aid off now!
Will owners of small hotels have to provide health insurance to their workers?
No. Under the law, small businesses (under 50 employees) do not have to offer health insurance. Your business is totally exempt from the Affordable Care Act. This means no fines, fees or penalties.
Can you offer health insurance to your employees if you want to? Sure you can! It's totally up to you. If you do decide to extend coverage to your employees, you can take advantage of the new small business tax credit. Here are some details:
Small businesses are eligible for tax credits when they provide health insurance to their employees. The credits work on a sliding scale as long as the business has up to 25 employees and pays average annual wages below $50,000.