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Covered California Sets Goal To Enroll 7,000 Small Businesses By 2014

Covered California has been marketing Obamacare aggressively to individuals. Now the online health insurance exchange has added a new target: small businesses.

Even though small businesses aren't required by the Affordable Care Act to provide health insurance, they are being encouraged to enroll their employees in Covered California.

The Affordable Care Act does not require businesses with fewer than 50 employees to provide health insurance.

Nonetheless, Covered California is encouraging small firms to sign up.

Businesses can enroll online or through designated insurance agents.

They can also buy plans outside of the exchange.

But exchange spokeswoman Anne Gonzales said small businesses that go through Covered California are eligible for federal tax credits.

“Especially if they have fewer than 25 full-time equivalent employees. They can contribute 50 percent of their employees’ premiums, and then they would get some tax credits, up to 35 percent, of their employee contributions,” Gonzales explained.

The exchange has set a goal of enrolling 7,000 small businesses by the end of next year.

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