Despite being described as "affordable," the mandates of the health reform law have taken a financial toll on businesses that provide employee benefits to their workers, according to the results of a new survey.
Between Nov. 20 and Dec. 4, the National Small Business Association conducted a survey, polling the managers and owners of nearly 780 companies throughout the nation. At 91 percent, the overwhelming majority of respondents said that they were dealing with higher costs as a result of the Patient Protection and Affordable Care Act. Additionally, roughly one in four said that their expenses were 20 percent higher than they were prior to the reform law going into effect.
Todd McCracken, president of the NSBA, noted that it's clear what business owners' number one gripe is with the ACA, as cost ultimately determines whether they'll make coverage available to their staff.
"These costs have real-world implications," said McCracken. "One-third of small businesses held off on hiring a new employee and more than half say they held off on salary increases for employees."
Small business owners – or those that employ 50 workers or less – are immune from the mandate requiring them to offer health insurance. However, many business owners are unaware of this stipulation, resulting in confusion and added costs.
"Widespread confusion over the Affordable Care Act still exists among the majority of small firms," said Jeff Van Winkle, chairman of the NSBA. "Small businesses report spending on average 13 hours and $1,274 per month – and that's just on the administrative side of understanding the law itself."
The nonpartisan Congressional Budget Office recently released a rather scathing report on the healthcare overhaul, indicating that not only could it lead to more than 2 million people losing their jobs but a disincentive for people to work because of the subsidies that are provided.
