Small business owners say the Affordable Care Act (ACA) is wreaking havoc just as they predicted.
When it comes to Obamacare, here are small business’ biggest pain points:
Rate Increases
In the individual market, newly insured individuals were more costly than anticipated. Employer plans also continue to see premium hikes, especially as businesses lose their “grandfathered” status and must come into full ACA compliance. Additionally, premium rate increase requests vary widely by state, which makes it difficult for business owners to make budgeting plans.
Employer Responsibilities
With the ACA coming into full implementation, small businesses will have to grapple with the time and financial cost of compliance on items like the employer mandate.
Medicaid Expansion
The federal government will decrease its funding commitment for newly eligible enrollees beginning in 2017, so states may be forced to consider tax increases or spending reductions.
IRS Reimbursement Penalty
Small businesses can anticipate enforcement of the $100-per-day-per-employee penalty for reimbursing employees’ individual market health insurance costs beginning in 2016 during tax year 2015 audits. NFIB will continue to advocate for relief, but we need small business owners to speak out about the negative impact of this IRS regulation on your business. This will help drive legislative reform efforts.
Expansion of the Small Business Health Insurance Definition
Historically, the definition of a small business has been fewer than 50 eligible employees. In October 2015, Pres. Obama signed the Protecting Affordable Coverage for Employees Act, which prevents a mandatory federal expansion of the small group market definition. If states choose to expand the definition to a business that has fewer than 100 employees, midsize companies will see more requirements and restrictions, and small businesses would face additional premium increases.
End of SHOP Tax Credit
If your business qualified for the temporary tax credit in the Small Business Health Options Program, or SHOP, the maximum eligibility is two years. That means if your business claimed the credit for 2014 and 2015, you will not be eligible for it again in 2016.
Canceled Plans
The Obama administration allowed businesses to continue renewing noncompliant health plans. But that’s coming to an end—and businesses are seeing dramatic cost increases.
Keep up with Obamacare and related issues at NFIB.com/Advocacy/Healthcare.
