Health Insurance Relief May Be on the Way
Paying for health insurance in the individual market can be a huge expense for many sole practitioners, and costs are spinning out of control. To address this problem, the Virginia General Assembly passed SB 672, which was signed by Gov. Ralph Northam on April 6. The legislation revises the definition of “small employer” to include those who are self-employed, and those workers will be able to participate in the small-group health insurance market.
The new legislation defines a sole proprietor as an individual who derives a substantial portion of his or her income from a trade or business:
- Operated by the individual as a sole proprietor
- Through which the individual has attempted to earn taxable income
- For which the individual has filed the appropriate U.S. Internal Revenue Service (IRS) Form 1040, Schedule C or F, for the previous taxable year
As of now, the VSCPA and its health insurance partner, Employee Benefits of Virginia, are still waiting for more information on specific process issues, notably what information insurance carriers require to ensure that an individual is an eligible sole proprietor. We’ll send that information out to the membership as we have it!