Survey Says…Small Businesses More Likely to Cover Workers

Eight million Californians are self-employed or employed by small businesses. Yet these entrepreneurs and their employees make up 71% of the uninsured population in the state. This is because small business owners have been priced out or bullied out of the insurance market by staggering premiums and a lack of negotiating power.


But thanks to 2 key provisions of the Affordable Care Act, small business owners now report being more likely to start covering or continue covering workers (and themselves). The small business tax credit (already available) reduce the employer cost of providing coverage by providing credits between 35% and 50% of what they spend on benefits, ultimately saving California businesses up to $4.4 billion in the next 10 years. The Exchange will become available to small business owners by 2014, and will give business owners the benefits of large group coverage including the leverage of a larger purchasing pool, and lower administrative costs per employee.

According to a new national survey by Small Business Majority, a small business advocacy group founded and run by small business owners, the small business tax credit and the exchange will influence health insurance decisions.

One-third (33%) of employers who don’t offer health insurance said they would be more likely to do so because of the small business tax credits.

31% of respondents —including 40% of businesses with 3-9 employees—who currently offer insurance said the tax credits will make them more likely to continue providing insurance.

One-third (33%) of respondents who currently do not offer insurance said the exchange would make them more likely to do so.

The same is true for those who already offer insurance, with 31% responding that the exchange would make them more likely to do so.

However, most respondents are not familiar with the exchange or the tax credits; only 31% of respondents are familiar with the exchange and 43% are familiar with the tax credits.


See complete survey responses here.

The positive impact of the federal health law for small businesses has been covered by the Los Angeles Times, as well as even Forbes, Business News Daily and Fox News.
Health Access California promotes quality, affordable health care for all Californians.

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