Negative Impact of Health Insurance Reform on Small Business Owners

Supporters of healthcare reform claim that it will makeinsurance exchange market--the Commonwealth
insurance more affordable, especially for individuals andConnector--has failed to sufficiently bend the cost
small groups. Increased consumer protection andcurve. Businesses note that there are relatively few
newly-created exchange markets would presumablyoptions available for small business employees at
allow smaller businesses to band together for cheapernear-market rates. Instead, it has focused on providing
rates. That would allow them to better compete withheavily subsidized plans for the previously uninsured.
large corporations, who are able to use their buyingTherefore, the Connector is little utilized by small
power to decrease their health insurance costs.businesses: only around 1,500 of all small business
However, the results may not be so bright. Someemployees in Massachusetts are insured through the
examples from Massachusetts, which enacted its ownexchange.
legislation several years ago, are beginning to becomeMeanwhile, the lack of focus on small businesses has
apparent. They highlight the downside of affordablebeen apparent. The launching and implementation of
health insurance reform for small business owners.pilot programs and even posting of relevant information
The national law gives the federal government theon their website was delayed for several years after
eventual power to impose price controls on healththe Massachusetts bill was passed. The programs that
insurance companies, if needed. In Massachusetts,have finally launched attracted few small group health
Governor Deval Patrick is already taking those steps.insurance providers, and correspondingly few
Eventually, the economy may implode as a result.businesses. Also, it has been slow in approving unique,
Those worries go beyond the ideological concernsattractive products that will reduce operating costs for
about further government encroachment on privatesmaller firms.
enterprise.Hopefully, the Obama administration will learn from
What is the problem with that? The issue is that manythese mistakes. Efficiency in providing options for small
small business owners fear that the law does not dobusiness owners seeking health insurance is essential
enough to control costs at the same time. The state'sin order for healthcare reform to be a success.