The inability of Congress to either repeal or replace ACA has left America’s small business owners (SMB) looking for new solutions to reduce their healthcare costs.
This is nothing new. SMBs have been among the health care law’s most vocal opponents, said Stacy Cowley in the New York Times.
“The most powerful trade group for small businesses, the National Federation of Independent Business (NFIB) is a fierce critic of the law and challenged its constitutionality before the Supreme Court. Some 60 percent of small-business owners want the law repealed, according to two recent surveys by Manta and BizBuySell, which regularly poll owners about their political and economic views.”
Health insurance costs remain their top concern in NFIB’s Problem and Priorities survey. Per the NFIB, of the 60 percent of small businesses not offering health coverage to their employees, 52 percent said the cost of coverage itself was the deciding factor.
Most small businesses run on tight margins. When their expenses rise, owners have limited options to keep their business open. And the high cost of healthcare keeps them from hiring and expanding their business. State executive director for NFIB California Tom Scott writing in the Los Angeles Times, explains how. “Obamacare has driven up costs for small business owners, who are hit with higher payroll taxes, taxes on health insurance products, the employer and individual mandate penalties, and the so-called Cadillac tax on expensive health insurance plans.”
Writing in BenefitsPro.com, Sally Poblete identified another side effect of what many SMBs viewed as confusing legislation. Namely, paperwork. The cost of complying with coverage legislation can be frustrating and time consuming, “Per the NSBA, 14 percent of small business owners spend more than 20 hours a month on federal regulations, noting the ACA as one of the most burdensome. Many were left feeling unsure of their compliance with the law, and also unsure of how to take advantage of it. The Small Business Tax Credit was one such example that small businesses felt was not simple nor broad enough to take full advantage of.”
At Proliant, we are committed to keeping updated on these types of legislative issues and providing guidance to small business owners as to their coverage options year over year. If you too are feeling unsettled, feel free to contact us.
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