From the National Business Coalition on Health: President Obama's healthcare law won't erode
employer-based health insurance — but it will raise some companies' costs by
nearly 10 percent, according to a new analysis
from the Urban Institute.
Although the law's critics usually focus on small
businesses, the new paper says medium-sized firms will see the biggest cost
Mid-sized businesses — firms that have between 101 and 1,000 employees — would
have seen a 9.5 percent jump in their total healthcare costs if the
Affordable Care Act had been fully in place this year, the paper says. (Many
of the law's key provisions don't take effect until 2014.)
would have seen their costs fall by 1.4 percent. Firms with more than 1,000
workers would have seen a 4.3 percent increase.
The report confirms one central criticism of the healthcare law — that it
will increase employers' costs — while also undercutting charges that the law
will lead employers to quit offering healthcare coverage. Overall, about 4
million more employees would have had healthcare coverage if the ACA had been
in place this year, the Urban Institute found.
Small businesses are central to many criticisms of the law. The National
Federation of Independent Business was part of the lawsuit decided by the
Supreme Court this summer, and Republican lawmakers argue that the law's new
mandates will crush small employers. But according to the Urban Institute
analysis, tax credits and purchasing efficiencies will help small businesses.
New mandates, though, will make coverage more expensive for mid-size and