Small Businesses Aren't Buying Obamacare
The National Federation of Independent Business today released a study that reveals small businesses aren't buying the new health care law.-- The study provides insight into why employers may be hesitating.
Twenty percent of small employers currently offering benefits expect to "significantly change their benefit package and/or their employees' premium cost share"by either a decrease of benefits, an increase in employee cost-share, or bothwhen they renew their current plans. Translation: Employees can't keep their current health plan and their new, Obamacare-approved plan--will most likely cost more. In fact, employers who currently offer health benefits are "notably more pessimistic" about the impact--of--the new law.
The Wall Street Journal's editorial notes that companies are already dropping coverage and more are expected to follow when the new--exchanges--are up and running: "Yet 12% of these companiesone of eighthave either had their plans cancelled or have been told that they will be in the future. This churn in the private small-group market is a direct result of ObamaCare's new rules and mandatesbut a far larger destabilization could be in the offing, what Mr. Dennis calls â€˜the flight to the exchanges.'
"Those would be the dispensaries of heavily subsidized insurance, and the NFIB finds that 26% of small businesses today sponsoring insurance are â€˜very likely' to drop it should their employees start to flood government coverage. Another 31% of the 750 firms surveyed report they are â€˜somewhat likely.'"