Volume 26/Number 18/January 21-28, 2013
What does the Affordable Care Act mean for small business owners
by Jenna Lippin
For small businesses, providing health benefits often proves to be a challenge. On average, small businesses pay about 18% more than large companies for the same health insurance policies. Because of this cost difference, smaller businesses are currently less likely to offer health insurance coverage to their employees than larger companies. Fifty-seven percent of small businesses with 50 or fewer workers offered health benefits to employees, compared to 92% of businesses with 51 to 100 workers, and 97% of businesses with 101 or more workers in 2011.
Going forward, several provisions of the Affordable Care Act (ACA), also known as “Obamacare,” will likely have significant effects on medical coverage for small businesses, their employees and their families. The areas of the ACA that will affect small businesses the most are the creation of new insurance exchanges, tax credit subsidies and penalties for some employers if they do not offer coverage. Continue reading An overview of ‘Obamacare’