COLUMBIA, SC – Largely left out of all the conversations about health care is the impact the president’s health-care law is having on small businesses.
The health-insurance tax in the Patient Protection and Affordable Care Act was disguised as a fee levied solely on insurance providers. The reality is that it is a tax being passed on to small-business owners who purchase insurance in the fully insured marketplace. Almost 90 percent of small businesses purchase coverage in this market and are being forced to foot an $11 billion tax bill in 2015 alone. The health-insurance tax will increase to $159 billion over the next decade, which translates to $5,000 in higher premiums for every family.
This hidden tax also will result in job loss. The National Federation of Independent Business Research Foundation projects that by 2023, as many as 286,000 private-sector jobs could be lost, with 57 percent of those in small businesses. The U.S. real output could be reduced by $33 billion by 2023.
Finally, consumers could see the real impact of this unnecessary tax, thanks to U.S. Sen. Tim Scott, who filed and passed an amendment to the Senate’s budget requiring health insurers to itemize the cost on monthly premium statements.
Small-business owners will now clearly see the financial burden being placed on their shoulders. It is high time for policies that put consumers first and give them all the information needed to make informed decisions about running their businesses and providing for their employees.
BEN HOMEYER, S.C. Director, National Federation of Independent Business