http://www.washingtonpost.com/busin...bf58fe-b8ca-11e2-92f3-f291801936b8_story.html
When the health care law was passed, Obama claimed it would not tax people or businesses directly, instead it would tax insurance companies (who would then pass the tax on, but that's hardly relevant to their claim).
One of the loopholes of this tax, however, is that businesses which provide their own insurance to their employees are not taxed under this provision. Only health insurance companies providing health insurance to businesses which don't self insure.
Over 80% of large businesses with more than 500 employees self insure.
Over 75% of businesses between 100 and 500 employees, so-called small businesses, use group insurance via major insurance providers.
Their premiums are going to go up significantly as a result of this tax, while big business premiums will stay the same, and possibly go down depending on how things ultimately shake out.
With the end result being that small businesses are shouldering one of the key sources of income in the healthcare plan that was to provide funding for the insurance of the currently 27 million uninsured and underinsured Americans.
Unintended consequences of a supposedly good loophole, or big business pushing the legislation in the direction that will lower their costs and raise the bar for potential competitors?
If only Obama would direct congress to fully fund the various small business initiatives, I'd actually believe him when he says he supports small business, but between lack of funding for programs he says he supports, and his healthcare law unevenly penalizing small business, it's hard to believe he's really paying attention to this market.
When the health care law was passed, Obama claimed it would not tax people or businesses directly, instead it would tax insurance companies (who would then pass the tax on, but that's hardly relevant to their claim).
One of the loopholes of this tax, however, is that businesses which provide their own insurance to their employees are not taxed under this provision. Only health insurance companies providing health insurance to businesses which don't self insure.
Over 80% of large businesses with more than 500 employees self insure.
Over 75% of businesses between 100 and 500 employees, so-called small businesses, use group insurance via major insurance providers.
Their premiums are going to go up significantly as a result of this tax, while big business premiums will stay the same, and possibly go down depending on how things ultimately shake out.
With the end result being that small businesses are shouldering one of the key sources of income in the healthcare plan that was to provide funding for the insurance of the currently 27 million uninsured and underinsured Americans.
Unintended consequences of a supposedly good loophole, or big business pushing the legislation in the direction that will lower their costs and raise the bar for potential competitors?
If only Obama would direct congress to fully fund the various small business initiatives, I'd actually believe him when he says he supports small business, but between lack of funding for programs he says he supports, and his healthcare law unevenly penalizing small business, it's hard to believe he's really paying attention to this market.
