The National Federation of Independent Business today released a study that reveals small businesses aren’t buying the new health care law.– The study provides insight into why employers may be hesitating.
Twenty percent of small employers currently offering benefits expect to “significantly change their benefit package and/or their employees’ premium cost share”by either a decrease of benefits, an increase in employee cost-share, or bothwhen they renew their current plans. Translation: Employees can’t keep their current health plan and their new, Obamacare-approved plan–will most likely cost more. In fact, employers who currently offer health benefits are “notably more pessimistic” about the impact–of–the new law.
The Wall Street Journal’s editorial notes that companies are already dropping coverage and more are expected to follow when the new–exchanges–are up and running: “Yet 12% of these companiesone of eighthave either had their plans cancelled or have been told that they will be in the future. This churn in the private small-group market is a direct result of ObamaCare’s new rules and mandatesbut a far larger destabilization could be in the offing, what Mr. Dennis calls â€˜the flight to the exchanges.’
“Those would be the dispensaries of heavily subsidized insurance, and the NFIB finds that 26% of small businesses today sponsoring insurance are â€˜very likely’ to drop it should their employees start to flood government coverage. Another 31% of the 750 firms surveyed report they are â€˜somewhat likely.'”