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Examining the Effects of Healthcare Reform on Small Businesses

The concept of healthcare reform is certainly nothing new. For several years, millions of Americans have been calling for the government to reform health care in the United States to make it more affordable to everyone. Yet, it hasn't been until the last several months that health care reform has taken center stage, thanks to the attention that President Obama has brought to reforming the U.S. healthcare system.

While many Americans support creating a health care plan to help reduce health care costs and make health insurance more accessible, many are concerned about the potential impact of Obama's health care plan on small businesses.

Concerns Regarding Health Care Reform and Small Businesses

According to the proposed Obama health care plan, health care reform will be funded largely by increasing taxes on those who earn $350,000 or more. While this will only affect a small percentage of Americans, critics of the Obama health plan are concerned that this taxation will place further strain on small businesses that are already struggling to survive.

Supporters of the plan, however, claim the proposed health care plan will actually help make health insurance costs more affordable to small business owners.

The Vicious Cycle of U.S. Healthcare and Small Businesses

The reality is that small business owners are already struggling to provide health insurance coverage to their employees. In fact, the costs are growing to such an extreme that many are not providing health insurance coverage at all. As a result, nearly one-third of those who are currently uninsured are employed by companies with less than 100 workers. In addition, the percentage of non-elderly Americans who are covered by employer-based health insurance fell by 5% largely due to the number of small businesses that dropped their health insurance coverage benefits.

Unfortunately, the lack of health care coverage through small businesses has only helped create the vicious cycle of rising health care costs, making it even more difficult for Americans to find affordable health insurance coverage.

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