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Analysis: Small Businesses Will Benefit From Reform, But Mid-Size Firms Will Pay More

10/09/12

  05:17:44 pm, by MedBen5   , 188 words,  
Categories: News, Health Plan Management

Analysis: Small Businesses Will Benefit From Reform, But Mid-Size Firms Will Pay More

Medium-sized businesses will take the biggest hit in the wallet from the health care reform law, according to a new analysis from the Urban Institute.

The Hill reports that employers who have between 101 and 1,000 workers would have seen a 9.5% jump in their total health care costs if the Affordable Care Act had been fully in place this year. (Many of the law’s key provisions don’t take effect until 2014.) In contrast, small businesses would have seen a 1.4% decrease in costs, while companies with over 1,000 employers would have seen a 4.3% increase.

“Overall, the evidence simply does not support critics’ arguments that the ACA will burden employers and undermine employer-sponsored health insurance,” the paper says. “On the contrary, except for a cost increase to mid-size employers due largely to enrollment increases, the ACA benefits rather than burdens small employers who want to provide health insurance.”

The frequently-cited concern that businesses will drop their health care coverage as more reforms are implemented wasn’t borne out by the analysis. Overall, about 4 million more employees would have had health care coverage if the ACA had been in place this year, the Urban Institute found.

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