There has been a great deal of discussion about the negative effects that PPACA will have on small business. The facts, however, do not bear this out. Only those businesses with more than 50 employees will be required to make coverage available to employees and contribute to its cost or pay a fee (Werhane, & Tieman, 2011). Businesses with fewer than 100 employees can obtain coverage for employees through state-based insurance exchanges and those with fewer than 25 full-time employees that provide health coverage may qualify for a tax credit to offset the cost. Advantages that the plan includes for small business include a limit on the amount that insurance premiums can go up each year and elimination of surcharges that insurance companies now impose on businesses with insured clients who have serious medical conditions. Some companies' premiums may actually drop because the insurance exchanges are expected to offer lower rates to small business than insurance companies charge. Also, with the new options for individual health insurance, small businesses may be able to attract workers who otherwise would work for larger companies in order to get insurance benefits.
There has been a great deal of discussion about the negative effects that PPACA will have on small business. The facts, however, do not bear this out. Only those businesses with more than 50 employees will be required to make coverage available to employees and contribute to its cost or pay a fee (Werhane, & Tieman, 2011). Businesses with fewer than 100 employees can obtain coverage for employees through state-based insurance exchanges and those with fewer than 25 full-time employees that provide health coverage may qualify for a tax credit to offset the cost. Advantages that the plan includes for small business include a limit on the amount that insurance premiums can go up each year and elimination of surcharges that insurance companies now impose on businesses with insured clients who have serious medical conditions. Some companies' premiums may actually drop because the insurance exchanges are expected to offer lower rates to small business than insurance companies charge. Also, with the new options for individual health insurance, small businesses may be able to attract workers who otherwise would work for larger companies in order to get insurance benefits.
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