Tuesday, July 26, 2011

Small Businesses Expect to Drop Coverage, See Costs Increase Under Obamacare

“The majority of America’s small employers simply do not believe that the law will accomplish most of what it promised to do”                                                                                                   — NFIB, 7/25/11

The National Federal of Independent Business released a new survey of businesses with 50 employees or fewer, and the results confirm Obamacare’s harmful effects on America’s job-creators.

  • 57% said they were likely to drop coverage if their employees can get a taxpayer subsidy under Obamacare to pay for health insurance.
  • 12% have already lost their current coverage because their insurer has either terminated their health insurance plan or indicated that the current plan won’t be available in the future.
  • 65% believe Obamacare will not slow down the rate of health insurance cost increases.

When small business owners think about what will happen as a result of Obamacare:

  • 77% think the law will increase taxes.

  • 71% think the law will add to federal budget deficits.

  • 65% think the law will infringe on the rights of Americans.

  • Only 19% think the law will reduce paperwork and make providing health care less complex.

  • Only 39% think the law will improve the overall health of the American public.

Obamacare will encourage firms to dump their employees into government-run exchanges, raising the cost of taxpayer-funded insurance subsidies, which is bad enough.

But when America’s job creators expect so many other damaging effects from Obamacare – higher premiums, higher taxes, bigger deficits, fewer liberties – it’s clear that Obamacare is the wrong medicine for a still-troubled American economy.