The New Yorker has tackled the issue with small business and ObamaCare (Affordable Care Act) and the drama that many small business owners have been buying into when it comes to how this Act impacts their businesses and employees. It also sucks the air out of those who have been fueling a fear flame that says, “ObamaCare will destroy small business and our country”. Here are some quick facts The New Yorker has released:
- Requires that employers with 50 or more full-time employees provide health insurance for their workers.
- Employer-sponsored insurance must cover 60 percent of costs
- Premiums can’t be more than 9.5 percent of the employees income
- Companies that don’t participate are charged a penalty fee
Here’s the deal:
- 96 percent of small businesses in the United States employ less than 50 employees. So they aren’t affected by the mandate.
- More than 90 percent of businesses with 50 or more employees already provide insurance
- Only 3 percent of businesses are in the range of 40 and 75 employees, which places them within the threshold—but the impact on the economy will be minimal
- “ObamaCare” provides another motivator for people to become small business owners now that the cloud of forfeiting employer-sponsored insurance will no longer haunt them. Now they can avoid “job lock”.
- A study reports that ObamaCare could enable 1.5 million people to become self-employed.
- Half of uninsured workers work for small businesses or are self-employed
- One quarter of small business owners are uninsured
- Insurance costs small business owners 18 percent more than larger businesses. That’s why fewer than half of companies with less than 50 employees provide insurance.
- ObamaCare provides tax credits to small businesses that want to insure their employees
- Now small businesses are rated by insurance companies based on “Community Rating” just like individuals, and no longer on “Experience Rating” like large corporations (who can pool the risk required by the insurance market). Small business gets to take advantage of the perks once reserved only for larger entities.
- The U.S. has the lowest rate of small businesses and self-employment in the “developed” world (Source: Economists John Schmitt and Nathan Lane, 2009)
- The nonsense you have been reading and hearing about ObamaCare crippling this nation is just that…nonsense!
To read The New Yorker article in its entirety visit: http://www.newyorker.com/talk/financial/2013/10/14/131014ta_talk_surowiecki?mobify=0
Copyright 2013. Some Rights Reserved. Foreman & Associates, LLC.