Surprise! Obamacare Fails to Offer Small Businesses Choices
Liberals think Obamacare will someday magically become good for American small businesses, but only after the Department of Health and Human Services (HHS) can iron out some wrinkles. They were wrong in 2009 and still are today. Tigers don’t change their stripes; Obamacare is a bad law and that’s not going to change.
Here’s how they made Obamacare seem attractive (sub. req’d):
A major selling point of the 2010 Affordable Care Act was its pledge to help lower health-care costs for small businesses by letting them shop in exchanges that offered more plan choices. The broader pool of options theoretically would increase competition among insurers and attract more plan participants, thus resulting in lower insurance premiums.
Another popular aspect of the small-business exchanges is that they would make it easier for small employers, which typically lack human-resources departments, to manage plans. An employer could make a single payment to an exchange, which would disperse the money to the various insurance providers covering its staff, among other benefits.
Obamacare’s Small Business Health Options Program (SHOP) isn’t giving said small businesses as many “options” as President Obama had promised. Rather than being able to shop for insurance policies in an insurance market, or exchange, and chose from multiple plan options, small employers only get to offer one plan to their workers. That is what HHS suggested for the first year for businesses that use the 33 state exchanges run fully or in part by the U.S.
Sen. Mary Landrieu (D-LA), who chairs the Senate Committee on Small Business and Entrepreneurship, is one 20 Senate Democrats up for reelection in 2014, and though she’s expressed disappointment in this delay, she and her liberal counterparts, such as Sen. Mark Begich (D-AK) and Sen. Mark Pryor (AR) and Sen. Max Baucus (MT) in the upper chamber still support the law they voted for. Apparently they don’t think this will tarnish their reputations.
It they truly knew what was best for their constituents, these lawmakers would think twice. As the Heritage Foundation explains, it is wishful thinking to believe that this is where Obamacare’s problems will end:
While the SHOP exchange held little benefit to begin with, postponing the ability for employees to choose their health plan and premium aggregation has now rendered it entirely worthless.
As the full implementation of Obamacare nears, this is likely just the beginning of Obamacare’s failures for small employers.
Maybe they should have read the bill.