As we stagger towards the start of the Affordable Care Act or Obamacare, the decibel level of horror stories, false statements and general fear mongering will increase. It is our goal here at Castell Insurance to try and give you a non-biased explanation of what is happening. So for today’s topic, let’s look at the statement that has been circulated by every opponent of Obamacare, “Obamacare will kill small business”. (Jose Pagliery @Jose_Pagliery NEW YORK (CNNMoney)
First, the individual mandate which forces firms to provide health care to employees only applies to companies with 50 full time workers. 97% of small businesses have less than 50 full time workers. This means that 97% of small businesses will not have to provide insurance for their employee. If they do that is great, they are a good employer and they strive to provide for their employees. Will they benefit from Obamacare? Will it save them any money? We do not know but we do know that they are not FORCED by the individual mandate to provide health care benefits.
Second, 96% of the small businesses that have 50 or more employees already provide health insurance benefits. Of those 96%, 99% of those work sponsored plans have insurance that meets most of the Obamacare’s standards. (University of Chicago National Opinion Research Center) http://www.healthaffairs.org/
So to sum up all the numbers; of the country’s 6.5 million workplaces, only 1% must actually start providing NEW HEALTHCARE BENEFITS next year. Is this going to kill small business in America? I think not……
So whatever happens as we move forward in this ground breaking implementation, please keep in mind that a healthy dose of common sense, applied to everything that you hear from the left and the right, will go a long way in keeping your stress at a manageable level.
If you are interested in more information about the opportunities for small businesses to cover their employees or if you currently cover your employees and are looking for answers, please feel free to contact us at www.Castellinsurance.com or call 360-683-9284.