One-Year Later: Small Businesses See More Harm, Not Help, From Democrats’ Health Care Law
A new report released today by the National Federation of Independent Business (NFIB), the nation’s largest small business advocacy group whose membership consists of 350,000 small business owners nationwide, provides further evidence that the Democrats’ health care law is adding higher costs, new taxes and increased deficits.
The key findings from the report provide a stark contrast to the promises of lower costs that were repeated over and over again by the President and other supporters of the Democrats’ health care law. In reality:
- 75 percent of small businesses that offer health insurance do not believe the law will slow the rise in health care costs;
- 81 percent of small businesses that offer health insurance believe the law will not reduce paperwork or make health care less complex;
- 79 percent of small businesses that offer health insurance believe they will see increased taxes; and
- 75 percent of small businesses that offer health insurance believe the law will increase federal budget deficits.
The report reveals that the Democrats’ health care law will be particularly devastating for employers with low-wage workers who may drop health coverage – either because they stop offering due to cost, are forced to as their competitors cease to offer coverage, or because a private entity cannot compete with the government. According to the report, “Low-wage employees … have a powerful incentive to bolt an employer’s health plan for the newly established and heavily subsidized exchanges. Should employees begin to leave for an exchange, 26 percent of currently offering small employers are very likely to explore dropping their health insurance plans and another 31 percent are somewhat likely to do so.”
One thing is certain: for too many small businesses, more – more taxes, more paperwork burdens, more costs and more deficits – does not mean better.