Do Gym Owners Have to Offer Health Insurance Under Obamacare?

Whether you own a small independent gym, a single franchise, or a fleet of gyms, you have an extensive to-do list. From hiring employees and setting up the work schedule to finding customers and maintaining equipment, your days are really full. As an employer, there are many regulations and laws that you must fulfill that protect your employees. You've probably heard of Obamacare but you aren't really sure what it means for your small business. You need some more information. Here's everything you need to know.

What Is Obamacare?

Obamacare is the nickname given to the Affordable Care Act (ACA). It was originally called the Patient Protection and Affordable Care Act, and it was enacted on March 23, 2010. The goal of the legislation was to help more Americans secure health insurance and to protect individuals with preexisting conditions. The act included new requirements for employers, a government-sponsored insurance marketplace, and extended the Medicaid program.

There were many controversies that swarmed around Obamacare. The act also included an individual mandate and people who didn't carry health insurance paid a fine each year if their income was above a certain level. The Tax Cut and Jobs Act of 2017 ended the tax penalty for individuals without healthcare. In the future, there may be more legal cases and laws abolishing parts of Obamacare.

What Does Obamacare Mean to Small Businesses?

The ACA created the Small Business Health Options Program (SHOP). The SHOP program helps small business owners — one to 50 employees or the equivalent of one to 50 full-time employees — offer health care coverage to their staff. Some private insurance companies offer SHOP, or you may need to work directly with a broker.

When you offer healthcare and dental care to your staff members, you can take advantage of the Small Business Health Care Tax Credit to offset the costs. However, in order to qualify for this credit, you must purchase the insurance through a SHOP program.

Due to the ACA, you must offer insurance to all of your employees if you offer it to any of them. Also, you can't have a waiting period to qualify for insurance that exceeds 90 days.

If you offer a Flexible Spending Account — this is money that the employee and possibly the employer place in a fund for future medical expenses — the employee can't contribute more than in a year. The employer isn't bound by the limitation.

When an employer offers insurance to employees, they must provide each employee with a "Summary of Benefits and Coverage" disclosure. This disclosure explains the costs and benefits for the employee. The goal is to help employees better understand their health coverage.

If your company or gym offers a wellness program for employees, you can take a tax credit off the cost you pay towards health insurance. When the program aims to eliminate tobacco use, and it's successful, you can enjoy a tax credit of up to 50 percent of the costs of insurance.

Do Gym Owners Need to Offer Health Insurance Under Obamacare?

Yes, if your gym employees more than 50 employees, you must offer health insurance to them. However, some businesses choose not to offer health insurance despite the rule. These businesses are subject to the Employer Shared Responsibility Payment. There are a lot of ins and outs to these tax laws, and Internal Revenue Service (IRS) offers the most up to date information.

While you might be required to offer your employees healthcare, the ACA provides numerous ways to help you more easily cover the costs through tax credits. And what gym owner doesn't love a good tax credit?

Benefits of Offering Health Insurance to Your Employees

Even if you don't have 50 employees and don't need to offer health insurance under the ACA, there are still benefits for offering it. Here are a few things to consider.

Discounts and Tax Credits

You can still take advantage of the SHOP program and the resulting tax credit. This helps to lower your overall tax bill while saving money on the cost of insurance.

Attract the Best Employees

You want to provide your customer base with the best employees possible. One way to do that is with an outstanding benefits program. Potential employees judge and choose an employer on two main points: compensation and benefits. You want your benefits package to be an asset for your company and not merely an expense.

Retain Current Employees

There's a large cost involved in replacing an employee, including the time lost. You have to sort through resumes, attend interviews, and train the new hire. If your staff consists of outstanding people, then you want to keep them. Offering a healthcare plan is one way to help you retain your current staff. If another gym offers insurance, while you don't, your employees may leave to go to work somewhere else.

Other Types of Insurance to Carry as a Gym Owner

In addition to health care insurance, there are other types of insurance that you might consider carrying to protect yourself, your investment, and your business. Here are a few to consider:

Liability

Most businesses are required to carry a certain amount of liability insurance. If there's an accident or a death on your property, liability insurance helps cover the costs of medical bills and court judgments against your gym.

Special Events

If you hold special events at your gym, it might be a good idea to get a special event's insurance policy to protect in case something goes wrong.

Worker's Compensation

You're required to carry a certain amount of worker's compensation insurance. If an employee is injured at work, this insurance protects you and pays their medical bills and partial salary.

Equipment Protection

You take care of the equipment in your gym and maintain it, but your customers probably aren't as careful as you and your staff. This type of insurance protects your investment.

Employee Practices

You hope that your employees will never do anything untoward, but it happens. Employee practices insurance can protect you against discrimination, sexual harassment, and wrongful termination accusations.

At NEXOFit, we want to partner with you in protecting your gym and helping it grow. Contact us online or by phone at .