Impact Of Affordable Care Act On Small Businesses

The intent of the Affordable Care Act is to cover more individuals by making coverage more accessible to everyone, not necessarily to reduce costs. Current studies indicate small employers could pay up to 18 percent more for health insurance coverage than large companies which discourages small business from purchasing coverage today. Overall costs of a company’s administration of reporting requirements and health insurance premiums may increase due to many of the regulations health insurance carriers must meet. Currently small employers are not subject to penalties and this may cause a growing business to pause and weigh the cost of growth from a completely new perspective. Staying small may be more cost effective in regards to the laundry list of compliance requirements and possible cost impact, but forward-thinking business owners will still see opportunities for growth with strategic planning and smart choices when given the possibility to expand.


Contact Shay at Shay.Bierly@mjinsurance.com or at 602-772-3300.