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John Arensmeyer

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Supreme Court Ruling To Uphold Affordable Care Act An Affirmation For Small Business

Posted: 07/03/2012 10:00 am

In ruling to uphold the Affordable Care Act on June 28, the Supreme Court made a mark on history -- a mark that signifies victory for the countless small business owners who've struggled with excessively high health insurance costs for decades.

Prior to the reform law's enactment, our health coverage market was unsustainable -- and for small business owners in particular. Now, more than two years since its passage, nationwide market reforms and other provisions of the Affordable Care Act are already benefiting small businesses and consumers alike. In so doing, they are reinventing what it means to purchase healthcare in America.

It's no news that lack of affordability is the main reason many small business owners don't offer health coverage to their employees. It's not that they don't want to provide it -- we know from our research they do. But unlike big businesses, small firms continue to face premium rates that are unpredictable in nearly every sense -- except for the guarantee that they will always increase.

That's why June 28 was a day for the small business history books. The Supreme Court ruling to uphold the Affordable Care Act protects a number of benefits that are helping offset small businesses' costs as they brave the tumultuous health coverage market. Provisions such as rate review and Medical Loss Ratio (MLR) have already resulted in lower premium costs and cash back for small employers. Millions of small businesses in 42 states will get rebates for part of their coverage costs in August because their insurers failed to spend 80 percent of their premium dollars on patient care and quality improvement as required by the MLR rule.

On top of that, the law's health insurance tax credits for small business owners with fewer than 25 full-time employees are helping hundreds of thousands of entrepreneurs who offer coverage save money on their health care costs. With those savings, they are reinvesting in their businesses and even creating new jobs. Now that the law's fate is no longer up in the air, eligible small business owners can look forward to 2014 when the maximum amount of the tax credit increases from 35 percent of their premium costs to 50 percent.

At this point, the number of eligible small business owners taking advantage of the credit is not as high as it should be. Our recent opinion poll found more than half of all entrepreneurs do not know they exist, and another recent survey had similar results. With other small business advocates, we are working to inform more eligible small businesses about them.

Also coming in 2014 are the health insurance exchanges, which are required to be set up in every state. These will do even more to curb costs and boost choice for small businesses by giving them an online location to pool their buying power with other employers and negotiate better rates. Entrepreneurs are looking forward to these marketplaces, according to another recent poll of ours, which also found that only a third of small business owners wanted to see the high court overturn the Affordable Care Act.

But luckily for those who wanted to see the law upheld, it was. And it's time to look forward and implement it with small businesses' needs in mind. The moment President Obama signed the Affordable Care Act into law, countless small firms -- from family-run farms in California's Central Valley to Greenwich Village cafés just getting off the ground -- began to see their hopes for more affordable healthcare become reality. Two-plus years later, we're now a step closer to giving these employers what they need. And it also means we're giving would-be entrepreneurs the chance to follow their dreams of owning a business, without worrying about how to get health insurance.

 

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10:07 AM on 07/10/2012
Funny you dont mention the other side effect that people have been discussing. My company and other that I have heard of are toying with getting rid of healthcare coverage all together and just paying the tax. It is cheaper to do that than provide coverage. Which means I will have to get into the insurance pool to get insurance and that is not pre-tax. So, I get insurance that costs a lot more. Thanks alot Obama.
09:29 AM on 07/09/2012
Dear John Arensmyer..I've been a small business owner for 45 years.I know many small business owners. Just what majority do you represent ? Is it possible for you to list your members ? What does it take to become a member?

Thanks,

Bob Linz, President
Meats by Linz, Inc
12:33 AM on 07/09/2012
According to the House Ways and Means Committee, the high court’s ruling leaves in place 21 tax increases in the health care law costing more than $675 billion over the next 10 years, Everyone talks about the tax penalty for not buying insurance. But that is just the tip of the iceberg. Obamacare taxes include: A 156% increase in the federal excise tax on tobacco, Individual Mandate Excise Tax, Employer Mandate Tax, Surtax on Investment Income, Excise Tax on Comprehensive Health Insurance Plans, Hike in Medicare Payroll Tax, Medicine Cabinet Tax, HSA Withdrawal Tax Hike, Flexible Spending Account Cap – aka “Special Needs Kids Tax”, Tax on Medical Device Manufacturers, “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI,Tax on Indoor Tanning Services, elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D, Blue Cross/Blue Shield Tax Hike, Excise Tax on Charitable Hospitals, Tax on Innovator Drug Companies, Tax on Health Insurers, $500,000 Annual Executive Compensation Limit for Health Insurance Executives, Employer Reporting of Insurance on W-2, “Black liquor” tax hike, Codification of the “economic substance doctrine.”
So how is this a "...affirmation for small business" ...?
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davidblanket
Have a Sonny Day!
09:22 PM on 07/08/2012
Written by one who has never had, and never will have, a sccessful small business.
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rmweld
01:35 PM on 07/07/2012
Keep Talking-----You may convince some people, but not the one who counts-------SMALL BUSINESS.
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Craigers61
12:29 AM on 07/07/2012
#1 I AM NOT A REPUBLICAN! The feds pushed manufacturing out, paid for it and subsidized it by institutions like the import export bank etc. The free trade treaties were a managed trade joke. But let’s stay on track so that you can logically think. Everything produced that is not interfered with and allowed to evolve economically drops in price as its resource abundance grows. Name a product, computers, faxes, cell phones, bits, bandwidth, etc. all of them fall down the asymptote as the economy of scale increases and technology evolves. All medical costs tracked the inflation rate until 1965 when Medicare started, from that point on they began to sky rocket. As anyone who is economically literate will tell you, any and all price controls cause the very opposite to happen. They continually escalate costs, cause shortages of the resource controlled and slow down or stop all evolution. Paleo-socialism is a religion wrapped around a fairy tale where believers think that they can stop all evolution and lower all costs by fiat and whim. Since this violates Marx’s perceptions as well, modern socialists are actually anti-Marxists.
02:59 PM on 07/07/2012
Yup. I agree. I think the reason we NEVER get the FACTS from either party is neither party want to expose the way they BOTH manipulate the system. They both do this for "Their" own agenda. The Agenda driven politicians do not have the same Agenda, but they have the same Tactics. The Tactics are what should be exposed. Democrats want EVERYONE to believe the Republicans are Rich and "GREEDY" Far from the truth, But if the Republicans stand and show how they are being mischaracterized they expose themselves for what they do and their agenda. Fact is the Democrats Control MOST big business. Lawyers and bankers by occupation are registered and vote Democrat by about 3-1. Just a list that touts by Majority of Democrats. Hollywood,athletic's,music/art, WALL STREET, INSURANCE industry,Unions, Education,Government.
Has anyone ever wondered WHY the DOW is usually higher when a Democrat is in OFFICE? Maybe because they AID the BIG Business? Where do you think the Unions invest in? Yep, the stock market.
What is a big investment? OIL? but that is the evil right business. Is it? A list of people that profited off of Oil or oil stocks. Nancy Polosie, Al Gore, Barack Obama, teachers retirement associations, (I am a former teacher) Don't take my word. I'm just a Minority that is tired of Political lie's. Research for yourself. Politicians keep us separated from each other so we are weaker on them. To keep us down doing their laundry.
Welfare is slavery.
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08:16 PM on 07/07/2012
They are just now starting to write the real regulations for ObamaCare.

They have barely started....and they are now officially at 127,000 pages of regulations to administer the program. It is estimated that by the time they are through.....there will be a total of 1.5 MILLION pages of regulations............NONE written by an elected official.

This is suicide.
09:53 PM on 07/06/2012
What a Joke.
mlp7595
sequester Marxism
09:43 PM on 07/06/2012
For the author and all who think government run healthcare is a good idea, look at Medicare and Medicaid, our two existing government run healthcare examples. The current tab for both is more than 742 billion. Actuarially, the Medis grow more than 7percent per year, decade after decade, while the US economy’s long term growth rate is less than 2.5 percent and simultaneously, the number of people paying in declines yearly. This means Mediscams grow 3 times faster than the US economies long term growth rate creating huge yearly deficits, decade after decade, meanwhile the number of people paying in declines yearly. The current healthcare attempt is bankrupt 5 times over and getting worse exponentially. Don’t you think that before we continue down the Obamacare road and create a complex multitrillion dollar health care reform for everyone under 65, maybe we should address the looming financial disaster in Medicare FIRST.
10:28 AM on 07/06/2012
Major Spin here on reality...reminds me of the old adage, "Hi, I'm from the Government and I'm here to help you!"
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06:20 PM on 07/06/2012
Are you a small business owner? I am and I disagree with your comment. Anyone who pays a health care bill knows the private insurance companies have been shifting costs to the "members" and away from large corporations and businesses "clients" for more than seven years. But not so for small business.

We are the government in this country. If you want better government -- and I do -- than get involved with it and try offering a comment that's truly based in reality rather than your made up sarcastic version.
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Craigers61
01:13 AM on 07/06/2012
Economic imbecility. My health care doubled in price after the first part of the law went into effect. All price controls cause the same things, price increases and then shortages. Romney care caused health care costs in his state to sky rocket, of course they blamed the lack of the mandate forcing young people to pay into the system. Socialism can’t work as it violates the laws of economics, But like all religions it will keep trying to cram a square peg into a round hole. When you start waiting in lines, when there are critical shortages of Drs when you have to wait in line for an MRI, cat Scan etc or when you are denied a bypass over age 65 in order to save the STATE money, remember you voted for it!
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06:30 PM on 07/06/2012
And your nonimbecilic economic play is, Craigers61? The previous one? The one the GOP promises to detail after their candidate is elected? Don't have one?

You know, speaking of economics and the U.S. I was reading an account this morning of how the Governor of Michigan in 2003 put together a package to offer a refrigerator manufactuer in a small town of 8,000 people that employed about 2700 people. I think it was Electrolux. After considering the Governor's plan, the company supposedly thanked, the governor, said it was the most generous plan they'd seen, but it just couldn't compete with paying one dollar and fifty-seven cents an hour per worker, so they moved the plant to Mexico.

I have nothing against the people of Mexico getting jobs so they can remain in their own country and even, who knows, raising their standard of living. That's capitalism, right? But that's not the capitalism of the U.S. that I know and respected. And those company owners, who had good times and bad in the U.S. who decided to bring their business to another country, well, their not my business/capitalism heros. They put profit before country as far as I'm concerned.
03:55 PM on 07/05/2012
The premise of this article, that forcing us to pay for Obamacare is going to save us money and now we can afford to offer health insurance, is way off base and amounts to propaganda spin. Obamacare has done nothing to increase competition across state lines between health insurers which would bring down pricing, it leaves in place the fear doctors have of getting sued, the ridiculous access to millions of dollars unscrupuous lawyers have (John Edwards made his fortune this way) and over-testing due to fear of frivolous lawsuits, and it is causing doctors to leave the medicare system or just retire. Plus it adds ridiculous requirements to health insurance coverage - whatever happened to "major medical"? None of this helps my small business. A lot of us self-employed people are looking at closing up and going to work for someon eif we have to continue to live under Obama's burdensome paperwork and socialist policies. Despite what he says, he doesn't like small business, and he has just raised taxes on the middle class big time.
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Footwarrior
Progressive Apparatchik
04:54 PM on 07/05/2012
Opening health insurance sales across state lines will give us a repeat of what happened to the credit card industry. Health insurance providers will simply move to the state that enacts laws that are most friendly to the industry. Your provider will be operating from a state like North Dakota, under laws created by legislators you don't get to vote for.

It's also worth noting that Obmacare will actually reduce the paperwork burden for health care providers. There will be one common electronic form for billing instead of the separate forms, rules and procedures now used by each separate insurance company.
03:05 PM on 07/07/2012
True, but it would also Create Competition. Which Would result in reduced rates. So even IF they moved it would be short lived escape.

NO, not worth noting, this has been going on for years.
Just because I sell it, does not mean I do not understand it.
mlp7595
sequester Marxism
10:59 AM on 07/05/2012
There can never be a victory for small business when a government, ANY GOVERNMENT, takes over 1/6th of the US economy and spirals the country in a tailspin toward bankruptcy. This guy must be a Maoist Keynesian economist with blinders on to not be able to see the Emperor Obama has no clothes. We have had tax and spend socialism for more than 50 years and complete bankruptcy is the result. Keynesian economics is a complete and total failure as proved by the former Soviet Union. IT DOESN'T WORK. PERIOD. THERE IS NO MULTIPLIER EFFECT, ONLY A CHANGING HANDS EFFECT AND A DIVIDING EFFECT creating factions and dependent groups pitted against one another. More of the same WILL NOT WORK. Until there are severe and long lasting SPENDING CUTS WITH NO NEW TAXES and a dismantling of Obamacare, nothing can improve.
04:03 PM on 07/05/2012
Excellent points!
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05:52 PM on 07/06/2012
I own a business and find your comment bewildering to say the least, and not based in fact. Do you own a small business?
mlp7595
sequester Marxism
09:15 PM on 07/06/2012
take some time off running ur cleaning service and study economics. You and the community organizer could both use a few lessons. Start with Thomas Sowell (any of his books) and then try Milton Friedman, Adam Smith just to name a few. And yes formed and consulted numerous small businesses and am about to sell one for millions before the Obama Taxmegeddeon takes place at the end of this year. Pray he gets voted OUT.
10:32 PM on 07/06/2012
If your small business was an Insurance Agency. Would you let the goverment tell you what you could make as a profit line? Fact is insurance companies are in business to make money to, when the claims and care cost go over what the rates bring in the lose money.
I am suprised we are not hearing more from them.
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davidblanket
Have a Sonny Day!
12:20 AM on 07/05/2012
Baloney!
10:39 PM on 07/04/2012
Is he on the President's payroll?
08:16 PM on 07/04/2012
Interesting article in the NYT

http://boss.blogs.nytimes.com/2009/07/08/who-is-the-small-business-majority/