Skip to main content

Dispelling the Myths of Health Care Reform: Cost – Small Businesses

Myth: Small employers will go out of businesses because of health care reform.

Fact: Health care reform will ease some burdens on small businesses, provide tax credits to help them pay for employee coverage, and help level the playing field with big firms who pay much less to cover their employees on average.

Throughout the country, small businesses are struggling as health care consumes a greater share of their payroll costs. The high costs are making it impossible for many small businesses to provide insurance to their employees, leaving millions of Americans without the affordable health care they need and deserve.

Nearly one-third of the uninsured, 13 million people, are employees of businesses with less than 100 workers. From 2002 to 2007, the percentage of small businesses offering coverage dropped from 68 percent to 59 percent, while 99 percent of larger employers were able to continue to provide coverage, due in large part to the fact that small businesses pay up to 18 percent more per worker than larger employers for the same health insurance policy. For those small employers who do offer coverage, more than half have switched to plans with higher out-of-pocket costs for employees or to plans that cover fewer services.

Health care reform will bring more affordable options to small businesses.
  • Small businesses that meet certain criteria will be able to purchase health insurance through an “insurance exchange” where they will be able to choose among a number of plans that provide better coverage at lower costs.
  • Small businesses who already provide coverage will receive a tax credit to alleviate the disproportionally high costs.
  • There will be financial incentives, pay-or-play provisions, for medium and large employers to provide coverage; however, a vast majority of small businesses will be exempt from these provisions.
It should be noted that the proposed public option plan will not be an option for employers who are already providing health care for their employees. These employers will not be able to move their employees into the public option. However, they will see their costs go down because of the added competition and benchmarks that the public option will bring to the market.

Not being able to offer the health care employees need and want is hurting small businesses. Benefits help small employers with recruitment and retention, while employees with benefits have increased productivity. Health reform will improve both the health and economic well-being of small business and their employees by expanding coverage and reducing costs.

Information provided is according to reports released by the US Department of Health and Human Services and the White House.


Popular posts from this blog

Are You Registered to Vote?

As we get closer to the November elections, Google searches on how to register are increasing, which begs the question: Are you registered? Do you know how to sign up?

Pennsylvania and many other states require voter registration before Election Day - in Pennsylvania's case, voters must be registered one month ahead of time.  So if you recently moved, just turned 18, haven't voted in a while, or never registered before, the time to sign up is now.

PathWays PA has partnered with Rock the Vote to offer voter registration through this blog! You can fill out the form below to register or to make sure that you are registered.

Please take the time to register, and also consider pledging to vote in support of your economic values at!

PS - click here to share a voter registration link on Facebook, Twitter, or Google+!

Register Now for National Audio Conferences on Job Scheduling

From our friends at CLASP Register now for three national audio conferences on job scheduling! Job schedules matter in many ways. For all workers, it helps when an employer is responsive to a request for a needed schedule change. And far too many workers have volatile and potentially destabilizing schedules. If you don't know when you are supposed to be at work until the last minute, how do you arrange child care or transportation? If your total hours fluctuate from week to week, how do you budget for rent and food? To address these issues and emerging policy opportunities, the Center for Law and Social Policy (CLASP) is hosting and sponsoring three Job Schedules Matter audio conferences.

The conferences, which are co-sponsored by the Center for Popular Democracy and the National Women's Law Center, will include comments from U.S. Senator Elizabeth Warren and Congressman George Miller on why they introduced the Schedules that Work Act. You'll also hear from workers about th…

Register for FRAC's Federal Nutrition Program Conference Calls

The Food Research and Action Center (FRAC) will host two public conference calls in October. Information on the calls follows below:
Breakfast Matters - Effective Messaging: Getting Positive Press in your Community

Thursday October 11, 3 – 4 pm ET
Click here to register.
Learn tips from a national communications firm about how to place your stories with local media and receive positive press coverage for your program.

Presenters: * Jon Dickl, School Nutrition Director, Knox County Schools, Tennessee
* Amber LaCroix, BRG Communications

Afterschool Meals Matter - Community Partnerships
Wednesday, October 17, at 1:00 pm EST

Click here to register.
Learn how you can connect with a myriad of community partners, from parent groups to corporate volunteer programs, who can offer you and your program their time, energy, and support. Community partners can assist you with meal preparation, programming, outreach to increase your participation, and ultimately to help build up community support and in…