Press Release

Small Businesses Are Paying for Health Law's Failures

Posted by


Small Businesses Are Paying for Health Law's Failures

(Washington D.C.) – According to recent data from the federal government, only a fraction of small businesses in America are signing-up for health care coverage through the Small Business Health Options Program (SHOP). The exchange was created under the Affordable Care Act (or Obamacare) to provide employers with fewer than 50 full-time workers the opportunity to compare plans and select quality coverage at attractive prices.  Access was later expanded to employers with 100 or less full-time workers. When Congress was considering the legislation, President Obama vowed that "millions of small businesses" would benefit from the law, but fewer than 11,000 have signed up under the SHOP program. There is reportedly a lack of choices, and it is also hard for businesses to reach criteria necessary to qualify for tax credits. Additionally, for businesses that signed up, about 64 percent of members in groups with 51-100 employees would experience a premium increase of 18 percent as a result of the expansion expected in 2016.

Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:

"This is yet another example where a "˜feature' of the ACA has come up extremely short of how it was sold to the American public, indicating continual flaws in this law that have yet to be addressed. The Affordable Care Act (ACA) was supposed to offer small businesses better deals on health insurance by letting them purchase plans on new exchanges, but have instead received a failed government-heavy market place – with rising costs and premiums.

There are a number of repercussions for employers and employees that come with these mandated requirements: possible layoffs, reduced work hours, and fewer new hires and expansion, among others. Lawmakers need to address these problems with the law so that one of the driving engines of this economy – small businesses – can get back to doing just that. If we expect small businesses to thrive as well as provide quality healthcare across the nation, true health care reform is desperately needed."

For Interviews with a LIBRE representative, please contact Brian Faughnan, 703-678-4581 or Josh Rivera, 202-763-4428