The Impact of Health Care Reform on Small Businesses

Published on
March 14, 2023

Health care reform has been a hot topic in recent years, with the Affordable Care Act (ACA) being one of the most significant pieces of legislation to impact the health care industry. While the ACA has brought about many changes, small businesses have been particularly affected by the law's requirements and provisions.

One of the key provisions of the ACA that impacts small businesses is the requirement to provide health insurance to employees. Under the ACA, businesses with 50 or more full-time employees are required to offer health insurance to their employees or face a penalty. This has led to many small businesses struggling to afford the cost of providing health insurance, and has led some to reduce employee hours or hire part-time employees to avoid the requirement.

Another provision of the ACA that has affected small businesses is the requirement to cover certain essential health benefits. This has led to an increase in health insurance premiums for many small businesses, making it more difficult for them to afford coverage for their employees.

On the other hand, the ACA has also brought about some positive changes for small businesses. For example, the ACA has made it possible for small businesses to purchase health insurance through Small Business Health Options Program (SHOP) exchanges, which can help them find more affordable coverage for their employees. Additionally, the ACA has also provided tax credits for small businesses that offer health insurance to their employees.

Despite the challenges and benefits, the ACA has had on small businesses, it's important to note that the law is constantly evolving. The ACA is still being modified and refined, and it's important for small business owners to stay informed about the changes and how they may impact their business.

In conclusion, the ACA has had a significant impact on small businesses, both positive and negative. The requirement to provide health insurance to employees and cover certain essential health benefits has led to increased costs for many small businesses, but the ACA has also provided opportunities for small businesses to find more affordable coverage through SHOP exchanges and with tax credits. As the ACA continues to evolve, it's important for small business owners to stay informed and adapt to the changes to ensure the best outcome for their business and employees.‍

Key Contacts

Hassan F. Abdallah JD, CHC, CPCM

Co-Founder & CEO

Let Us Tell You More!

Join over 4,000 clients served globally.