How Will Health Care Reform Impact Trucking Companies?

Phil Cohen

Health care reform, also known as the Patient Protection and Affordable Care Act, will be fully implemented by January 1, 2014. Health care reform applies to all businesses, so of course freight carriers and truckers will be affected.

The plan states that large companies employing 50 or more full-time workers will be required to provide insurance coverage or pay penalties. Penalties will run about $2,000 per employee. Smaller companies (fewer than 50 full-timers) are still not required to offer coverage, but if they do, they may face higher costs than before. It’s likely, the Affordable Care Act will increase health care costs for businesses of all sizes no matter what.

Larger companies that offer healthcare coverage must ensure that it is affordable for employees. If insurance is deemed unaffordable, companies will face financial penalties. To be considered affordable, single coverage should be no more than 9.5% of employees W-2 income.

Trucking companies will have to analyze the cost of providing versus not providing coverage. Even if it proves more cost effective to forgo insurance, trucking companies may still want to offer health benefits in order to attract and retain the top candidates. It appears that many trucking companies intend to make health care benefits available, but will raise the cost of coverage for employees in return.

Learn more about the Affordable Care Act and small businesses.

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Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

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