Health Care Reform Must Consider Small Business Issues!
September 24, 2009
Health Care Reform is as important to small business owners as anybody, but how it is designed can either help or hurt companies. It doesn’t make sense to push through a reform package that penalizes business with threats of penalties and higher taxes.
Take a look at these statistics and you’ll understand why companies need health care reform. In 1993 61% of businesses provided health insurance. Today only 38% provide coverage. The problem is that premiums have gone up 9-15% per year for several years now. Add to that the fact that more than 20 million self employed individuals have seen there costs rise by 74% since 2001 and it looks worse in the future.
The truth is that small business wants Congress to say yes to meaningful reform that provides:
- Continuity so that we can keep our current plan and doctors.
- Cost containment that so that premiums will not continue to rise at current rates.
- More affordable choices for individuals to choose from.
- Insurance reform that prevents insurance companies from denying coverage on pre-existing conditions.
- Redesigning systems to included electronics record keeping.
Many companies simply cannot afford to provide coverage for their employees so some reform will be welcomed. Forcing owners to provide coverage they can’t afford will simply cause financial hardship and may drive many small businesses out of business.
If Healthcare Reform Is So Good For Small Business, Why Do We Have To Threaten Them?
September 20, 2009
Why do we have to threaten small business owners with fines if health care reform is such a good deal? When you make health care reform mandatory and create fines for those who don’t provide it, you’re setting up a serious problem for many small business owners.
I have a hard time understanding the logic of adding costs to small business owners who are already struggling to stay in business. It’s a catch 22. You either add to your cost by providing health insurance or pay a fine for not providing it. That sounds pretty much like a lose lose situation.
With the economy still in bad shape, in spite of what Washington is saying, businessmen are still having a hard time. Some that I’ve talked to have had their lines of credit pulled or frozen, even though they have made all their payments on time.
Some businessmen I’ve talked to have indicated they’ll have to lay people off if providing health insurance become mandatory. Others have indicated they may outsource work overseas or use more independent contractors.
The latest bill proposed by Senator Baucus doesn’t even touch on two things that would help everyone including small businessmen. It doesn’t address medical malpractice and doesn’t allow people to cross state lines to find cheaper insurance policies.
When you come right down to it, we’ll all have to deal with whatever bill passes. I personally hope that someone in Washington stops to think about the impact of some of the current proposals. Small business owners want change just like everyone else, but don’t put them out of business.
Does Health Care Reform Discourage Small Business Growth?
September 12, 2009
Heath care reform has some real problems for small business owners. With health care reform still undecided, it’s anyone’s guess on how it will turn out. One thing is certain though and that is that no one is approaching health care reform with small business in mind.
Under one proposal a small business that employs 25 employees or more would have to insure all employees or pay a per employee penalty. One proposal excludes the first 25 employees and, recommends a $750 penalty for the 26th employee. The first 25 employees would remain exempt.
Some small business owners would like to see a tax on premium health insurance plans that give large businesses an advantage in hiring employees. Small business owners believe that it would level the playing field. Taxing premium health insurance plans would also help pay for the cost of health care reform.
Unfortunately other proposed tax increases with surely hurt small business owners. Although President Obama promises not to raise taxes, current tax proposals will hurt small business owner’s that file as Sub-Chapter S Corporations. Whatever your current situation is, make sure you contact your representative to let them know how you feel about Health Care Reform and how it will affect your business.
Why Does The National Federation Of Independent Business Oppose Health Care Reform?
September 10, 2009
The National Federation Of Independent Business owners points to several reasons why Health Care Reform will hurt small business owners. They point out that any plan that forces small business owners to provide health insurance will cost jobs and prevent businesses to grow and prosper.
Large businesses can get lower premiums do the the economies of scale. Small businesses will not be able to survive with any kind of government mandate, including the so called public option.
It’s not that small business owners don’t want some sort of health care reform, but the current proposals do more to hurt business rather than help them. Business owners have complained since 1986 about the rising cost of health insurance and want something done.
* Small business owners provide health insurance for 68 million employees each year.
* Since 1999 health insurance premiums have risen 113%.
* Between 2000 and 2005, the cost of health insurance compared to payroll increased 43.5%.
When you realize that small business owners produce approximately two thirds of new jobs annually, you have to wonder why proposals that would hurt the small business owner are on the table. It’s like shooting yourself in the foot.
The NFIB has three priorities, address cost, choice and competition. They have given several proposals to congress, but they seem to fall on deaf ears at this point. Let’s hope that whatever the final plan looks like that it doesn’t hurt small business owners the way current proposals surely will.
Small Business Owners Are Divided On Health Care Reform!
September 9, 2009
Small business owners, like the rest of the country are divided about the proposed health care reform. Most small business owners are fed up with the high cost of health insurance offered by insurance companies, but aren’t sure that the current proposals are the answer. Small business owners pay about 18% more for health insurance that larger companies and what they are offered for their premiums aren’t very good.
It’s estimated that one third of uninsured Americans work for small businesses that have less than 100 employees. When it comes to businesses with fewer than 10 employees, less than half offer health insurance. There is wide spread concern that a government plan would require business owners to pay more than they can afford.
Some small business alliances are in favor of a government backed plan, the larger National Federation of Independent Business owners are apposed because they fear it would cause many businesses to fail. The NFIB would prefer that small business owners form larger groups that could negotiate lower rates.
What is certain at this point is that nothing is certain about what the final plan will look like. It is important for all small business owner to be informed and write to their representative.
Health Care Reform Concerns Small Business Owners!
September 7, 2009
Health care reform threatens small business owners with a pay or play option. Small business owners either provide health insurance for their employees or pay an 8% penalty under the current proposal floating through Congress.
Many business owners provide health care for their employees, but could not afford the government mandate. Some small business owners say they will have to lay off some employees in order to comply if the current proposal becomes law. Other indicate they would have to eliminate pay increases and bonuses, including the Christmas bonuses that many owners provide. The National Federation of Independent Business Owners says they are concerned about the amount of job losses this plan would cause. How would creating more layoffs help the economy?
Politicians seem to forget that small business owners employee a very large part of the work force. In addition, small businesses can help lead the country out of recession if they are allowed to grow. Health Care Reform would have the opposite affect by causing layoffs. Politicians don’t seem to be concerned about the impact. In fact, Rep. Charlie Rangel, D-NY., who chairs the Ways and Means committee wants to add a surtax on 2 million tax filers. It’s estimated that up to 60% of those are small business owners.
If you are a small business owner, and would like more information on this subject, send me an e mail.