The start of 2014 brought the implementation of new elements of the president’s health care law. As each aspect of the Patient Protection and Affordable Care Act (PPACA) is phased in, its impact on employers, employees and families is no longer based on hypotheticals and talking points. We’re now getting a sense of its real-world impact, and this reality is not what was predicted.
During the month of January, a number of new taxes, including the HIT, went into affect. New data from the nonpartisan Congressional Budget Office (CBO) suggests the long-term ramifications of these and other regulations included in the legislation are significant. According to the report, the PPACA will reduce the number of full-time positions by approximately 2.3 million by 2021, more than double previous estimates of 800,000.
While this certainly is discouraging, it is not surprising. The CBO’s findings echo an analysis done in early 2013 by the NFIB Research Foundation, which predicted the health insurance tax, alone, would result in a reduction of private sector employment by more than 250,000 in 2022.By increasing costs for those who purchase health care in the fully insured market, the HIT disproportionately affects small business. With 88 percent purchasing their coverage through the fully insured market, they will be forced to pay more than $100 billion over the next decade.
Small businesses in the U.S. are responsible for two-thirds of all new job creation and are essential to economic growth, and protecting this important economic contributor is essential. While the health care law ignites major partisan disagreements on Capitol Hill, protecting small businesses and hardworking American families does not. As a result, more than 250 Members of Congress – both Democrats and Republicans – have cosponsored legislation to repeal the HIT, and a bill to provide relief from the HIT for two years has also found bipartisan support.
We will continue to work with these legislators to advance these commonsense policies, and encourage you to get involved as well. Follow us on Facebook and Twitter for the latest news, and write your Member of Congress to express your concern for small businesses and their employees and tell them to support legislation that provides relief from the HIT.