According to the article “How Health Reform Benefits Small Employers” by John Arensmeyer on Businessweek.com, the new health care reform bill is looking to lower health insurance costs for America’s 28 million small businesses.
Many health insurance companies in 2010 saw dramatic increases in in small group plan enrollment. UnitedHealth Group specifically enrolled 75,000 new small business employees and Blue Cross Blue Shield of Kansas City saw a 58% jump in their small business coverage. They attribute this to the new health care reform bill which offers generous tax credits. The new law offers a tax credit for up to 35% of their health insurance costs which is going to rise to 50% starting in 2014. This will have a huge impact on small businesses across the nation.
Some critics believe that not enough small businesses will be eligible for the tax credit, but a report released in 2010 says otherwise. This report, released with Families USA, a non profit consumer health care advocate, determined that about 84% of small businesses across the nation would be eligible for the tax credit on 2010 returns. This is over 4 million companies and is seen as a great benefit overall. It’s clear that there will be some type of improvement for small businesses as they strive to offer affordable health insurance benefits to their employees.