Print Page   |   Your Cart   |   Sign In
News & Press: Arizona Business News Updates

Arizona small businesses fear rising costs with Affordable Care Act

Friday, June 29, 2012   (1 Comments)
Posted by: Rhette Baughman
Share |
Rick Murray, CEOWith the Supreme Court upholding the Affordable Care Act, some small businesses face rising costs when the full law goes into effect in 2014.

This morning, the Supreme Court upheld the most controversial portion of the law, the individual mandate, which requires individuals to either buy health insurance or pay a fine. The majority opinion from Chief Justice John Roberts described the fine as a tax, which is permitted under the powers of Congress. Businesses with 50 employees or more will also have to insure their employees or pay a fine.

"I don’t know any quicker way to kill an economy that is trying to get out of the doldrums than to add taxes to small business,” said Rick Murray, CEO of the Arizona Small Business Association.

Murray said many of the businesses represented by ASBA are concerned about rising costs.

"They’re upset about it,” he said. "A lot of them do not offer health insurance because of financial reasons.”

Businesses with up to 25 employees are eligible for a tax credit of up to 35 percent if they cover half of their employees premiums. That tax credit could be as high as 50 percent when the full law goes into effect.

Businesses with fewer than 50 employees will not face a fine if they do not offer insurance. Those with fewer than 100 employees will have the option to shop for insurance plans in proposed exchanges, a kind of marketplace for different insurance plans.

With so many different aspects of the law having different effects on different areas of the market, it’s hard to predict exactly how the small business community will react.

Economist Marjorie Baldwin at Arizona State University’s W. P. Carey School of Business said costs are not likely to decrease. Baldwin participated in conference calls with the White House Health Reform Task Force in 2009 before the initial bill was drafted.

Source: Phoenix Business Journal

Comments...

scott schrader, Trugreen says...
Posted Tuesday, July 10, 2012
If insurance companies had not been gouging customers for years, then there would not of been any reason to try to regulate them. For businesses with 25 or less employees I think this will actually decrease health costs provided those companies are already offerering health insurance to its employees.

Don’t offer a 401K? No problem.

Nationwide

Introducing Guaranteed Retirement Income from NationwideSM
This new way to save for retirement gives your employees guaranteed retirement income every month for life, for as little as $10 a month.

LEARN MORE

Have Your Best Year Ever in Business

Accord Business Consult

The very first session of team training serves to galvanize the minds of the entire team around a central theme for success in the year ahead. Team members will also establish practical and achievable goals.

LEARN MORE

Think BIG, with UPS.

UPS

Whether your business is high tech or handmade, our expert-designed products and services can make your small business run more efficiently. Our solutions were created with the specific needs of small businesses in mind.

LEARN MORE

RSVP

Experience ASBA

REGISTER

Date: Held monthly
Time: Click for times based on location
Location: Phoenix or Tucson

RSVP

ASBA Speed Networking

REGISTER

Date: Held monthly
Time: Click for times based on location
Location: Phoenix or Tucson

Affordable Dental Plans for ASBA Members

Delta Dental

Your smile deserves Delta Dental, the nation’s leading dental benefits provider. With the largest network of dentists, personalized service & special pricing for ASBA members, we make it easy to keep your smile healthy.

LEARN MORE

Have questions on small business and health insurance?

Health Insurance

Get the latest on individual, sole proprietor, or group plans related to small business. We can help you find the right plan for you, and your employees. Click to learn more!

LEARN MORE

Small is the New Black

ThinkSmallBiz

What's trending for 2017? Small Business! This year, resolve to support our local economy by "Thinking Small" at least one time each week! Need help finding a small biz? Visit ThinkSmallBizAZ.com! #ThinkSmallBiz

LEARN MORE

Association Management Software Powered by YourMembership  ::  Legal