The economic and unemployment crises appear to be taking their toll on the traditional ways Americans obtain health insurance.  Gallup’s latest health insurance poll shows a new low in November: just 44.8 percent of Americans report receiving health-care benefits through an employer.  This figure is down from 50 percent in January 2008, when Gallup first began tracking it.  While the percentage of Americans with employer-based health care continues its steady decline, the percentage of Americans with government-based health care, such as Medicare, Medicaid, or military/veterans’ benefits, remains elevated at 26 percent.  At the time of the poll, nearly one in six Americans report having no health insurance—a figure which rose sharply in late 2008 and has remained high.

These figures arrive amidst continuing turmoil around ObamaCare, which, in part, would require all Americans to buy health insurance starting in 2014.  A Virginia U.S. District Court judge recently ruled this portion of the Affordable Care Act unconstitutional, which makes the future of American health care even more uncertain.  A major goal of ObamaCare is to decrease the number of people without health coverage, even if those people have to purchase insurance on their own.

So far, the percentage of uninsured Americans is elevated but holding steady.  Instead, while employers are steadily eliminating health-care benefits, government-based programs are picking up new candidates in baby boomers eligible for Medicare and in unemployed workers relying on Medicaid.

ObamaCare continues to make waves in its latest string of legislative challenges.  The latest challenge to the health law, a Lynchburg, Virginia case brought by Liberty University and five individuals, alleged Congress could not force Americans to purchase health insurance.  Judge Norman Moon dismissed the case, finding that the “challenged provisions are well within Congress’ authority under the Commerce Clause” of the Constitution. The plaintiffs in the matter plan to appeal.

The Virginia ruling proves one thing: The lower courts’ decisions show no consensus about the constitutionality of the health law.  In October, a Michigan federal judge dismissed a Christian law center’s argument and upheld ObamaCare’s constitutionality.  A pair of Florida lawsuits, one filed by 20 U.S. states and one filed by a Virginia attorney, could fare better.  In October, a Pensacola judge found that the government’s expansion of power was without precedent—a decision that allowed the states’ challenge to go forward. The judge is scheduled to hear further argument on the matter later today.

So what’s next for ObamaCare—a final decision from the U.S. Supreme Court?  That might be what it takes to finally lay this controversial issue to rest. Then, individuals and small businesses can make concrete preparations for the myriad changes ahead.

Health care changes are afoot—lots of them.   We’ve all heard about the health care reform passed by the Obama administration, dubbed “ObamaCare.”  Such reform includes sweeping changes like mandatory health coverage, extended dependent coverage, and limited spending on flexible spending accounts, to name just a few.  But what do all these changes really mean for your small business?

To start, by 2014, small-business owners and their employees must purchase a government-approved health insurance policy that offers unlimited lifetime and unlimited annual coverage.  New guidance issued by the administration mentions a potential waiver for businesses whose compliance would result in a significant increase to premiums or decrease in service availability.  Still, according to Obama administration estimates, these mandates could increase health premiums by seven percent.

The impending health care changes not only affect employees, but also employees’ children.  Under the new system, coverage must be provided to dependent and nondependent children up to age 26, regardless of children’s employment or marital status.  One estimate figures this mandate could cause a two-percent increase to premiums, if not more for small-business owners.

And what if the small-business owners switch health plans are no longer grandfathered?  Then the owners and their employees must bear the entire cost of preventative-services coverage.  This mandate is expected to increase premiums by roughly 1.5 percent; however, the administration is considering allowing employers to shop for less expensive health plans without penalty.

What’s more, by 2012, employers must begin reporting the cost of employer-sponsored health coverage on their employees’ W-2s.  These amounts aren’t taxable, but reporting them could put a tax on your payroll department!

These mandates are just a sample of changes expected for health care in the coming years.

To combat rising premiums, under the reformed health care system, small businesses that pay at least 50 percent of their employees’ health insurance premiums may qualify for a tax credit.  In 2010, the maximum credit is 35 percent of employers’ contributions to health insurance premiums.  By 2014, the maximum credit increases to 50 percent.  However, by 2016, businesses may no longer claim the tax credit and must shoulder the health care changes alone.

With so many health care changes on the way, who’s to say what these new mandates will cost, what additional insurance benefits must be provided, or even what kinds of insurance will be available to provide those benefits?  As a small-business owner, you’re already juggling so much paperwork.  Don’t get lost in the shuffle.  GHRO is here to guide you through the health care changes as they happen.  As the ultimate partner for HR outsourcing, we’ll help you make smart decisions for your small business.  We can even reduce your employee benefits costs by customizing the right package at the right price for your small business.  To discover a complete solution to your employee benefits needs, call GHRO at 888-308-0338.

President Barack Obama has signed legislation that extends the COBRA subsidy program until May 31, 2010..

Before the extension, involuntary terminations that occurred after March 31, 2010, didn’t qualify for subsidies for COBRA continuation coverage.

With the extension, workers who are or were involuntarily terminated between September 1, 2008 and May 31, 2010 are eligible for 65 percent COBRA subsidies. Workers can receive the subsidies for up to 15 months.

The extension also includes a provision that allows workers who were involuntarily terminated after March 31 but before passage of the extension to qualify for the subsidies.

Given the latest extension, employers will have to update their COBRA notices. HR.BLR.com and Compensation.BLR.com will post revised notices once the Department of Labor updates its model notices.

The COBRA subsidy program was created by the American Recovery and Reinvestment Act of 2009 (ARRA). The Senate has approved legislation that would extend the program through the end of 2010. However, the House has yet to give its approval.