A new report released last Tuesday by the Kaiser Family Foundation reveals a troubling trend between small businesses and their ability to continue providing health care benefits to their employees under the Affordable Care Act (ACA).
It shows that only 50 percent of small businesses employing between three and 49 workers continue to offer health care coverage to their employees—a decline of 9 percent since 2012 and a drop of 16 percent from a decade ago.
It’s not difficult to imagine why so many businesses are dropping benefits. Health care costs have gone through the roof since the ACA was implemented and small businesses simply can’t afford it. For example, Scot Johnson—who owns a small remodeling business in Wisconsin—was confronted with a 50 percent price increase that forced him to drop coverage for all his employees this year.
The trend is even more troubling because the ACA is weakening the most common mechanism by which Americans receive health insurance—through their employer. So when businesses are no longer able to cover the costs for health coverage, employees get stuck with the very expensive bill.
The ACA continues to wreak havoc on small businesses and their employees across the country. Congress needs to act quickly in order to remedy the situation.