Small Business

Coverage Benefits

Small Business Health Options Program

Focus on what’s important – getting back to work. 

Good health at work

good health at workMaryland’s businesses employ a highly diverse and well educated workforce, and Maryland’s business owners have proven themselves to be enterprising and inventive. As a small business owner, providing your employees with health coverage options can help drive employee satisfaction.

Maryland small business health coverage offers a range of health insurance options for businesses with just a few employees to those employing dozens of workers. Whether you’re looking to reduce the cost of your health insurance coverage, or begin offering health coverage to your employees in 2014, you’ll find the choices you need and the financial incentives to help offset the cost if your business qualifies.

Flexible solutions for a healthy workforce

flexible workforce solutions for your businessImportant changes are coming to health coverage for small businesses in Maryland. Maryland Health Connection offers plans with a range of coverage choices, and the assurances made possible by the federal Affordable Care Act. Beginning in 2014, no one can be denied coverage based on current health status or pre-existing conditions. Employers cannot be charged higher premiums for women or have an increase in your group’s premium due to employees with high medical costs.

Helping you with the cost of health coverage

federal tax credits may help reduce the cost of health insuranceYour small business or nonprofit organization may be eligible for federal tax credits to help reduce the cost of health insurance for employees with Maryland small business health coverage. In 2014, the health care tax credit will increase, paying up to 50 percent of premium costs. The credit will be available to employers for two years, but only through Maryland Health Connection.

To qualify, small employers must:

  • Contribute at least 50 percent of the cost of employee premium costs
  • Employ fewer than 25 full-time employees
  • Pay an average annual salary of less than $50,000, excluding the wages of owners and their families

Note: Employers with 10 or fewer full-time employees paying an average annual salary of $25,000 or less are eligible for the maximum tax credit.

See how tax credits can benefit your business!

Here’s an example for an employer who qualifies for the maximum credit worth 50% of their premium contribution in 2014:

Number of employees: 10
Wages: $250,000 total or $25,000 per employee
Employer contribution to employee premiums: $70,000
Tax credit amount: $35,000 (50% of employer’s contribution)

Find out more about your tax credit.