Majority of Small Businesses Will See Health Premium Rate Hike Because of Obamacare
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The Centers for Medicare and Medicaid Services Office of the Actuary last week released with little fanfare a report that is shaking up the debate over Obamacare’s impact on the economy, according to The Wall Street Journal. The federal actuarial report predicted that 65 percent of small businesses will see their health insurance premiums increase because of President Obama’s signature health law.
Looking at employers with 50 or fewer full-time workers, the report forecasted that plans covering 11 million people would have a price jump in their premiums because of community rating provisions in the law, while 35 percent of businesses would see a decrease in costs for plans covering some 6 million people. The CMS report did not estimate how much premiums would increase or fall for either group, Wall Street Journal writer Jennifer Corbett Dooren wrote.
Lawmakers on both political sides yesterday seized on the report, according to CNN Political Ticker. Republicans pointed to the findings as more proof that Obamacare is hurting the economy while Democrats noted the report does not take into account federal subsidies and tax credits that are available to lower monthly premium rates.
Meanwhile, the National Association for Business Economics said there is no clear consensus among business economists on the expected long-term impact from Obamacare. In a new policy survey of 230 members, the trade group found:
- 42 percent of business economist believed the health law would not have a significant impact on long-term economic growth
- 30 percent believed Obamacare would reduce long-term growth
- And 18 percent believed it would increase long-term economic growth.
This story was produced by The Foundry’s news team. Nothing here should be construed as necessarily reflecting the views of The Heritage Foundation.