Small businesses like Begneaud fear the plan designed to save them money may end up taking more money out of their pockets.
“We do provide health insurance for all of our employees, but we’re really hoping not to see the rates increase more than they already have,” says Begneaud Chief Operating Officer Aaron Broussard.
87 percent of small businesses purchase insurance in the fully insured marketplace. Insurance companies that provide this coverage will bear the brunt of an $87 billion health insurance tax. Self-insured plans are exempt from the tax. Insurance companies will have two choices: either eat the costs or pass the costs on to their customers.
“It may impact our hiring, it may impact our expansion. Future plans all have to be reconsidered now after looking at this bill going through.”
The National Federation of Independent Business predicts this rise in cost could reduce the annual take-home wages of the average small business employee by $500 every year..
Despite the strain the health insurance tax could put on small businesses like Begneaud, they say they’re in it for the long haul.
“I’m committed to this company, to this team, everyone working here. We’re here to stay,” says CEO and founder Don Begneaud.