Total employment in Texas will drop by 7,751 to 14,135 by 2022 because of a new health insurance fee under the Affordable Care Act, according to a coalition of small business owners, their employees and the self-employed.
The study, released today by the National Federation of Independent Business, also found that Texas’ overall gross domestic product will be reduced by at least $4.1 billion over the next 10 years because of the fee. I spoke with AMANDA AUSTIN, director of federal public policy for the federation, about the survey results this afternoon.
The fee is part of the Patient Protection and Affordable Care Act. Beginning in 2014, the act imposes a $500 fee on insurance policies purchased in the fully-insured market, Austin said. Eighty-eight percent of small businesses purchase their insurance in the fully-insured market, according to the National Federation of Independent Business.