DES MOINES, IA  –

Every dollar matters for small businesses. That’s why Wellmark Blue Cross and Blue Shield has contracted with H&R Block^® to help small businesses take advantage of health insurance tax credits created by the new health care reform law.

The Tax Credit Estimator on www.wellmark.com features an H&R Block^® online calculator where employers can estimate their potential savings from the health care reform small business tax credit.

“We want to help small businesses continue to offer health insurance, or encourage them to start offering health benefits to their employees,” says Joe Garcia, Wellmark’s vice president of sales. “The tax credits are significant – using the online calculator is a quick and easy way to make sure small businesses are getting all the benefits and savings available to them.”

About the small business tax credit

The Affordable Care Act provides federal tax credits – up to 35 percent of an employer’s premium expenses – to small businesses who provide health care coverage to their employee. The credit is effective with tax years beginning in 2010, and continuing through 2013. The credit will be enhanced when other reform provisions become effective in 2014.

To qualify for the tax credit, a small business:

• Must have fewer than 25 full-time employees (or full-time equivalents)
• Must have an average annual employee salary of less than $50,000
• Must pay at least half of employees’ premiums for single coverage.

The credit is calculated on Form 8941. The size of the credit gradually decreases as an employer exceeds 10 full-time employees, or pays average wages in excess of $25,000.

Small businesses may find more information about the tax credit on www.wellmark.com in the Employer section, or may call their Wellmark Sales Representative. Additional information from the Internal Revenue Service is available at www.IRS.gov.

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Wellmark, Inc. (www.wellmark.com ) does business as Wellmark Blue Cross and Blue Shield of Iowa. Wellmark and its subsidiaries and affiliated companies, including Wellmark Blue Cross and Blue Shield of South Dakota and Wellmark Health Plan of Iowa, Inc., insure or pay health benefit claims for more than 2 million members in Iowa and South Dakota. Wellmark Blue Cross and Blue Shield of Iowa, Wellmark Blue Cross and Blue Shield of South Dakota, and Wellmark Health Plan of Iowa, Inc. are independent licensees of the Blue Cross and Blue Shield Association.

The information regarding tax rules is provided for general informational purposes only. Please consult your tax advisor about how these rules impact you. Wellmark does not provide accounting, legal, tax or investment advice.  This information is not intended to be used for the purpose of avoiding penalties that may be imposed by federal or state taxing authorities.

Wellmark is not providing any legal advice with regard to compliance with the requirements of the Affordable Care Act ("ACA") and Mental Health Parity and Addiction Equity Act ("MHPAEA"). Regulations and guidance on specific provisions of the ACA and MHPAEA have been and will continue to be provided by the U.S. Department of Health and Human Services ("HHS") and/or other agencies. The information provided reflects Wellmark's understanding of the most current information and is subject to change without further notice. Please note that plan benefits, rates, renewal rate adjustments, and rating impact calculations are subject to change and may be revised during a plan’s rating period based on guidance and regulations issued by HHS or other agencies. Wellmark makes no representation as to the impact of plan changes on a plan's grandfathered status or interpretation or implementation of any other provisions of ACA or MHPAEA. Any questions about Wellmark's approach to the ACA or MHPAEA may be referred to your Wellmark account representative. Wellmark will not determine whether coverage is discriminatory or otherwise in violation of Internal Revenue Code Section 105(h). Wellmark also will not provide any testing for compliance with Internal Revenue Code Section 105(h). Wellmark will not be held liable for any penalties or other losses resulting from any employer offering coverage in violation of section 105(h).