Small Biz Owners Say Health Care Reform Helps Cover Workers

Small Biz Owners Say Health Care Reform Helps Cover Workers

by Mike Hall, Jan 5, 2011

Here’s something that certainly isn’t going to be highlighted when Republicans begin their let-no-facts-get-in-the-way show trial of health care reform. Small business owners say the Affordable Care Act will spur them to provide health insurance for their workers.

Yep, while House Republicans stage their health care reform repeal vote Kabuki dance this week and next, the same small business owners Republicans claim to represent are looking at health care reform as a way to cut their health care costs.

A poll of small business owners with 50 or fewer workers by the Small Business Majority finds that two key provisions of the health care reform law—small business tax credits and insurance exchanges—make them more likely to provide health insurance to their employees. The Small Business Majority is a national nonprofit small business advocacy organization.

The small business tax credits allow businesses with fewer than 25 employees who have average annual wages less than $50,000 to get a tax credit of up to 35 percent of their health insurance costs beginning in tax year 2010. Insurance exchanges, which go into effect in 2014, are online marketplaces where small businesses and individuals can band together to purchase insurance.

The poll shows that 33 percent of employers who currently don’t offer insurance said they’d be more likely to do so because of the tax credits. Another 33 percent of respondents not offering insurance said they’d be more likely to because of insurance exchanges. The results for employers already providing benefits are almost identical.

John Arensmeyer, CEO of Small Business Majority, calls the finds “encouraging” but says most employers are not aware of tax credit or exchanges.

Once small business owners learn about the tax credits and insurance exchanges, they realize these provisions will help them provide insurance to their workers, many for the first time ever. However, many employers don’t know these provisions exist, so it’s imperative to continue getting the word out so they can take advantage of these benefits.

Among the survey’s other findings:

• An average of 31 percent of respondents—including 40 percent of businesses with 3-9 employees—who currently offer health insurance said the tax credits will make them more likely to continue providing insurance.
• Nearly one-third (31 percent) of respondents already offering insurance said the exchange makes them more likely to continue offering it.
• Only 31 percent of small business owners are very or somewhat familiar with the exchange, and 67 percent are a little or not at all familiar with it.
• The margin is smaller when asked about the small business tax credit: 43 percent of respondents are very or somewhat familiar with it, and 56 percent are a little or not at all familiar with this provision of the law.

And speaking of bipartisan support—the respondents represent a range of political points of view: 41 percent identified themselves as Republicans, 21 percent as Democrats and 27 percent as independents.

Click here for the full survey.

Tags: Affordable Care Act, health care, health care reform, insurance exchanges, labor, small business, Small Business Majority, tax credits, union, union blogs, unions

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