Why Small Business Cares So Much More About Health Insurance

96% of U.S. employers have fewer than 50 employees. For them, affording health care coverage is a major struggle.

Here’s a simple explanation for why small business owners in America care so much about the health care debate.

Even before the Affordable Care Act, most large employers offered health insurance to their employees.

The Kaiser Family Foundation says nearly 96 percent of large companies in the U.S. were already offering coverage to employees, even before the ACA took effect. (The ACA requires companies with 50 or more full-time employees to provide insurance to employees and their dependents.)

However, only 35% of small businesses (defined as those with fewer than 50 workers) were offering health insurance to employees before the ACA. For many small businesses, group insurance was almost impossible to obtain due to unaffordable premiums or pre-existing health conditions.

Odds are that most large employers will continue to offer health insurance regardless of what happens with health care legislation.

But many small businesses could cancel coverage or find it unaffordable again if a solution to the health care crisis isn’t found.

The Takeaway: According to the National Conference of State Legislatures, only 2 percent of U.S. employers have 100 or more employees.

An amazing 96% of all U.S. employers have fewer than 50 employees. Most of these smaller businesses do not offer health insurance at all, or are struggling to pay for it.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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