Affordable Care Act is Good for Small Businesses

Skyrocketing health insurance costs threaten the economic survival of family farmers, ranchers and rural small business owners.
The Affordable Care Act, however, will provide crucial relief for rural small businesses and the rural self-employed who have watched their health insurance premiums double in the last five years.  We’ve written before about how the Affordable Care Act provides small business tax credits for up to 35 percent of employees’ health care costs for businesses with fewer than 25 employees. And rural small businesses and their employees stand to benefit from the Act in a number of other ways.

Full implementation of health insurance exchanges in 2014 will further reduce costs for small employers.  Small businesses can shop in an Exchange, or health insurance marketplace, giving them power similar to what large businesses have to get better choices and lower prices. And this new marketplace for health care will offer individuals and small businesses a choice of affordable coverage from an array of health plans that meet certain benefits and cost standards.

Costs will be lowered through wise investments, investing in preventive care, and linking provider incentives to outcomes.  Providing tools to control Medicare costs through the Independent Payment Advisory Board will further lower costs for small businesses.

Additionally, covering a greater share of the population will reduce the number of uninsured who end up in the emergency room, a hidden cost passed on through higher premiums to businesses that insure their employees.

For more information on provisions of the Affordable Care Act, visit: http://www.cfra.org/policy/health-care