National Council of Nonprofits Health Care Reform Page

In 2010, Congress passed the Health Care and Education Reconciliation Act, which changes some of the funding and benefits provisions of the Patient Protection and Affordable Care Act.

Notably for Nonprofit organizations, the Act provides a Small Employer Credit, a "tax credit that will allow small nonprofit employers (25 employees or fewer, average wages less than $50,000 per year) to deduct 25% of qualified health costs from 2010-2013 and 35% of qualified costs for 2014 and onward for up to two-years from their withholdings tax liability."

The Act also provides for Health Insurance Exchanges, "a mechanism for individuals and employers to buy lower-cost health insurance as a part of purchasing pool. All employers with fewer than 100 employees and individuals with incomes between 133% and 400% ($24,352 – $73,240) of federal poverty level will be eligible to participate in the exchanges once they are operational. States are permitted to allow employers with more than 100 employees access to the exchanges after 2017. The law anticipates that the exchanges will be operational by January 1, 2014."

This web page provides more information on how small nonprofits can make full use of the Patient Protection and Affordable Care Act.