Recently, the National Small Business Association released a survey showing that a quarter of small businesses were being hit with health insurance rate increases of at least 20 percent. In addition, more than 90 percent of respondents indicated seeing cost increases the last time they renewed their health insurance plans.
According to BenefitsPro, an online aggregator of employee benefits news, analysis and trends, these numbers may be an indicator that the Patient Protection and Affordable Care Act (PPACA) will hurt small businesses and their employees. According to the survey, one third of participating small businesses chose not to hire a new employee last year, while more than half delayed salary increases for current workers.
This information came out just after a similarly pessimistic report from the Congressional Budget Office estimated the ACA will reduce the total number of hours Americans will work this year by 1.5 to 2 percent, or roughly 2 million full-time jobs. These numbers have fueled criticism of the health care law. The CBO noted that the reduction in hours worked would be “almost entirely” by low-wage employees who may choose to keep their subsidies and tax advantages that the law would grant rather than work the extra hours.
However, White House Press Secretary Jay Carney was quick to quell concerns in a statement released Feb. 4.
“Over the longer run, CBO finds that because of this law, individuals will be empowered to make choices about their own lives and livelihoods, like retiring on time rather than working into their elderly years, or choosing to spend more time with their families,” the statement read.
Regardless of the long-term effects of the ACA, many small businesses will be feeling the pinch of extra health care fees. Those in need of additional business capital may look into a cash advance for small business.