Fact: New tax credits for small businesses
The ACA sets up a tax credit(35% now, up to 50% in 2014) for small businesses to assist with health insurance costs. The CBO estimated a savings of $40 billion for small businesses by 2019.
Fact: State Insurance Exchanges will open more savings for small businesses.
Small businesses, historically, have little bargaining power with insurance companies and generally pay premiums that are 18% higher than larger companies. With the formation of the exchanges, small businesses get more choices, lower prices and greater bargaining power(this is limited to firms with 100 or less employees).
Fact: Small businesses will not be discriminated against due to a "sick" worker.
Before ACA, if a small business had a chronically or terminally ill employee, they could face much larger insurance premiums. the ACA ends this discrimination in 2014 by enforcing "community rating" rules which will prohibit this practice of punishing all for one person's health issues.
Fact: ACA lifts "job lock"The way insurance companies work now, because its tied to work, is that people who have chronic illnesses(could be as small as allergies) or an ill child cannot better themselves by looking for another job or opening up their own business because they are "uninsurable"--pre-existing condition. What do we, as a country, lose when people are locked into one position? The ACA eliminates the idea of "pre-existing conditions" and with the state exchanges, again gives small businesses more bargaining power on price concerns.
Fact: ACA lifts "job lock"The way insurance companies work now, because its tied to work, is that people who have chronic illnesses(could be as small as allergies) or an ill child cannot better themselves by looking for another job or opening up their own business because they are "uninsurable"--pre-existing condition. What do we, as a country, lose when people are locked into one position? The ACA eliminates the idea of "pre-existing conditions" and with the state exchanges, again gives small businesses more bargaining power on price concerns.
Fact:Reduces hidden tax that affects small businesses (and all of us)
Anyone who drives really hates that one premium...you know the one...uninsured driver...we responsible ones think, WTF why doesn't these lazy SOB's start taking responsibility for their driving???? And now, with ACA, we're doing the same with health insurance. At this time, the cost of treating the "uninsured" adds about $1000, annually to every health care premium. Because ACA gives the states the ability to set up health care exchanges, mandates all people to have some insurance, and forces the insurance companies to spend at least 80% of premiums on health care instead of junkets to the Bahamas, these "hidden taxes" will dissipate.
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