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Help for small businesses

Posted by: Jeff Davis on Aug 10, 2009

Small businesses play a significant role in our economy. In fact, over 96 percent of firms employ 50 or fewer workers. 

Like everyone else, these businesses need some relief. According to a recent report by the Executive Office of the President, Council of Economic Advisers, small businesses pay up to 18 percent more per worker than larger businesses do for the same health insurance plan. 

Why? One of the major reasons is because, unlike larger businesses, it only takes a few workers in a small business who get sick to drive up the costs for everyone. 

This is where health reform comes in. 

Health reform levels the playing field by spreading the risks across many individuals and small businesses. If an employee gets sick, premiums don't go up for everyone. If an employee has a pre-existing condition - premiums don't go up at all.

What's more, health reform will provide subsidies to help small businesses who are struggling to cover employees buy an insurance plan in the exchange. And other small businesses who still cannot afford to purchase a plan may be exempt from the new regulations.

The Obama Administration recognizes that helping small businesses is the key to our economic recovery. Making health care expenditures more affordable for small businesses will in turn create a healthier and more productive workforce-one that we need to help our economy grow and prosper.