ACA: Fear and Opportunity for Small Employers

Small Employers Weigh Impact of Providing Health Insurance by Steven Greenhouse and Reed Abelson.  The New York Times.  November 30, 2012.

Some small employers are deciding if they should be fearful about the Affordable Care Act or can view it as an opportunity.  Most employers, including small businesses, already offer health coverage and will not be significantly impacted by the requirement in the next year or so.  However, among firms in the retail and hospitality industries where employees often cannot afford their share of insurance premiums there is great concern.  By 2014, firms employing more than 50 employees will be expected to offer affordable--as yet undefined--coverage or pay a fine of 2,000 per employee, excluding the first 30 employees.  Some small employers suggest that they may lower the number of hours worked to fall outside the requirement for coverage.  This course of action however, experts in the article suggest, will put those employers at a competitive disadvantage.  Definitions are key as employers await clarification of key concepts such as "full-time employee" and approved coverage.

Some small employers however view the ACA as an opportunity.  With tax credits, they are able to offer health insurance for the first time.  These businesses had 15 and 5 employees.