In a previous blog, we discussed what many small businesses would do in regards to their employee health benefits. Many small businesses would still provide health benefits regardless of whether or not the Affordable Care Act is overturned or pushed through by the Supreme Court. While many small businesses wouldn’t stop offering benefits with the new act, it is important to consider what the resulting costs might be for small businesses if the law is overturned. An article written by Walt Rowen, found on The Huffington Post, goes into detail about these consequences and provides insight into the economic costs of the Affordable Care Act to small businesses.
The article discusses the high expense of health benefits for small businesses based upon current law. To supply health care benefits, devastating premiums are charged to small businesses across America. The benefits of the Affordable Care Act and new laws have already been noticed, with small businesses benefiting most from tax credits. Walt Rowen further explains how the new act will allow small businesses to develop the same buying power as corporations when purchasing insurance for their employees. It gives them the ability to offer the kinds of benefits that will help attract and keep quality employees.
Rowen states, “Without reform, our health care costs would more than double to $2.4 trillion by 2018 and 178,000 small business jobs would be lost as a result”. The overall cost to small businesses is not only damaging, but is creating an environment where businesses will be unable to provide the necessary health care employees need.
To read other effects the health care reform will have, you can read more of Rowen’s article here.