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Posted on 09-02-2010
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Health care repeal will cost small business

Photo: ESFP
Small business owners, might no longer be able to offer health insurance to employees if health care reform is repealed.
Conservatives’ efforts to repeal the Patient Protection and Affordable Care Act would have dire consequences for small business owners and their employees. That’s because small businesses are big beneficiaries of health care reforms that will help make health coverage more affordable, thus preserving wages, eliminating job lock, saving jobs, and increasing profits and competitiveness.
Repeal would mean that small business owners will continue to drop health coverage for their employees in the face of escalating costs. The percentage of small businesses offering coverage has been steadily dropping, down from 68 percent in 2000 to 59 percent in 2007. If the Patient Protection and Affordable Care Act is repealed, that downward trend would continue.
This will leave many families with no protection when illness strikes. Nearly one-third of the uninsured—13 million people—are employees of firms with less than 100 workers.
Repeal would mean that small business employers who can afford to offer health insurance must do so at the expense of increased wages for employees and decreased profits, business investment, and new job creation. Currently 40 percent of small businesses report spending more than 10 percent of their payroll on health care costs.
Repeal would mean that small businesses will continue to pay on average 18 percent more for health insurance coverage than large firms because they must purchase coverage in a marketplace that provides little competition or choice among insurance plans. They would lose the ability to purchase health insurance through the reform law’s “insurance exchange” that will allow them to choose among a variety of plans that provide better coverage at lower costs than those in the current small group market.
Repeal would mean that eligible small businesses will not receive the small business tax credit. This help is targeted to small firms with low average wages to encourage these ...
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