IRS Guidance on Average Small Group Market Premium Amounts -
Friday, May 21, 2010
Source: NAHU, National Association of Health Underwriters
Under the new health care law, small businesses and tax-exempt organizations can claim credits for nonelective contributions made on behalf of their employees for insurance premiums.
The amount of the credit is calculated by taking a percentage of the lesser of:
- The nonelective contributions paid by an eligible employer on behalf of employees during the tax year; or
- The nonelective contributions the employer would have made if employees were enrolled in a plan with premiums equal to the average premium for the small group market in the state where the employer is offering coverage. For this purpose, IRS Revenue Ruling 2010-13 establishes the premiums for the 2010 tax year.
The amounts range from a low of $4,215 in Idaho for employee-only coverage to a high of $6,204 in Alaska. Click here to read the Revenue Ruling with the state-by-state table.