Small Business Is Not Better Off Under Obamacare

John Ligon / December 17, 2009

An Issue Brief released yesterday by the Robert Woods Johnson Foundation (RWJF) concludes that small firms would largely benefit from the reform efforts that have been put forth in both the Senate bill (HR 3590) and the House bill (HR 3200). While the benefits from these bills to small businesses already are uncertain – and likely even deleterious – the latest version of the senate bill is even less likely to result in actual benefits for small employers.

Previous Heritage analysis has shown that small businesses would be affected by employer mandate structure under the House bill (HR 3200) and the cost-impact of this “pay or play” mandate is not trivial as the aforementioned RWJF Issue Brief purports. These mandates would effectively reach small firms with less than 25 workers—all small firms with, on average, between 21 and 25 workers— which are the small businesses that are supposed to reap the benefits of reform. (more…)