According to some surveys only one in four small businesses in the States with five or less employees offers health care benefits. More than half of close to 50 million people without health insurance in the U.S. are employed in small firms, own one or are dependent on one. These facts are alarming and it is only expected that much needed changes will happen for the small business in order for health insurance costs to come down. Those lobbying for small business are of the opinion that those changes must among other include tax credits for small firms providing coverage, reform of insurance rates and access to state and national insurance pools.
The costs associated with offering insurance weigh heavily on small businesses. Most of the small business owners who are not providing health insurance for their employees are literally forced into that. They simply cannot afford it considering how high health insurance premiums for small businesses are. Those that offer coverage do so in order to keep their employees or attract skilled workers. Just for those reasons, health care benefits are critical to business success. President Obama proposed health care plan that brings no relief to small businesses, as the requirements of the health bill would be hard to fulfill. The bill would require all individuals to have health insurance and all employers to provide it. This proposal would require all employers with an annual payroll above $250,000 to provide health insurance for their employees and the ones that don’t would be penalized.
Although there are four main proposals being discussed in Congress, small business owners are not convinced any of those would improve their situation as they feel their needs are not being recognized by the reformers. Besides health care plan that President proposed, there is another proposed by Senator Kennedy that would levy a $750 per employee annual charge for employers. The third is proposed by Senate Finance Committee and does not include any penalties for employers who don’t offer coverage and only for that reason would never pass. Proposed reforms are also criticized by state and national business groups for doing little to make health care more affordable. The health plan proposals are yet to be discussed in Congress, but there is little faith among small businesses that these debates will result with health care reform that will be beneficial to them.
This controversial issue also brings a questions of small business financing and small business ideas.
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Proposed Health Care Reform Worries Small Business Owners
According to some surveys only one in four small businesses in the States with five or less employees offers health care benefits. More than half of close to 50 million people without health insurance in the U.S. are employed in small firms, own one or are dependent on one. These facts are alarming and it is only expected that much needed changes will happen for the small business in order for health insurance costs to come down. Those lobbying for small business are of the opinion that those changes must among other include tax credits for small firms providing coverage, reform of insurance rates and access to state and national insurance pools.
The costs associated with offering insurance weigh heavily on small businesses. Most of the small business owners who are not providing health insurance for their employees are literally forced into that. They simply cannot afford it considering how high health insurance premiums for small businesses are. Those that offer coverage do so in order to keep their employees or attract skilled workers. Just for those reasons, health care benefits are critical to business success. President Obama proposed health care plan that brings no relief to small businesses, as the requirements of the health bill would be hard to fulfill. The bill would require all individuals to have health insurance and all employers to provide it. This proposal would require all employers with an annual payroll above $250,000 to provide health insurance for their employees and the ones that don’t would be penalized.
Although there are four main proposals being discussed in Congress, small business owners are not convinced any of those would improve their situation as they feel their needs are not being recognized by the reformers. Besides health care plan that President proposed, there is another proposed by Senator Kennedy that would levy a $750 per employee annual charge for employers. The third is proposed by Senate Finance Committee and does not include any penalties for employers who don’t offer coverage and only for that reason would never pass. Proposed reforms are also criticized by state and national business groups for doing little to make health care more affordable. The health plan proposals are yet to be discussed in Congress, but there is little faith among small businesses that these debates will result with health care reform that will be beneficial to them.
This controversial issue also brings a questions of small business financing and small business ideas.