Running a small to medium-sized business (SMB) is not easy. From managing customers and inventory to staying on top of the latest tech and digital marketing, the work never stops. Of course, the dream is for successful SMBs to grow, adding staff along the way. But it’s not that simple.
The price of growth
Under the Affordable Care Act, businesses of 50 or more face penalties if they do not provide health care coverage for their full-time employees. Additional penalties stack up if they fail to provide coverage for employees that work 30 hours a week or more. Of course, premiums for small businesses are very steep — and often cost-prohibitive.
Forcing 49ers and 29ers
As a result, many businesses that could otherwise grow are afraid. So they cap hiring at 49 employees and limit schedules to no more than 29 hours of work per week. That means SMB workers are relegated to less than full-time work with no health care benefit, and at the same time, businesses stop growing. It’s a lose-lose situation.
What’s the answer?
The basic premise of insurance is the more risk is spread, the lower the cost of health insurance. This means an employer of 500 people will pay far less for health insurance than an employer of 5 people. Therefore, allowing insurers to create state-wide purchasing pools would allow them to spread risk on a large scale.
How can SMB owners stand up and speak out?
We have teamed up with Job Creators Network, a nonpartisan organization founded by entrepreneurs like Bernie Marcus — co-founder of The Home Depot — who believe that government is getting in the way of our nation’s original pursuit of economic freedom.
Together, we’ve created a 7-point “Health Care for You” framework that uses a free-market approach to fixing our nation’s health care system. Subscribe now to receive timely health care policy updates and quick, easy ways you can make an impact in Washington DC on behalf of America’s small businesses.