photo credit: pfala
Earlier in the week we talked about the possibility of mandated health coverage for all employers, the thought of this I’m sure sends most employers into a frenzy wondering how they will be able to afford this proposal. However, a recent study posted on New York TimesÂ reported that the Obama administration is looking into signing new bills that could end up saving the small business community tens of billions of dollars even if that mandate goes through.
It is reported that more than half of small businesses who employe 9 or fewer people do not offer health coverage to those employees, it is simply to expensive. Think of it as buying in bulk, the more you buy the more you save, in health coverage the more employees you ensure the less you pay on your end.
It is not that small businesses don’t want to provide the coverage, they do, they just can not afford it due to the high costs of health coverage these days. So in order to correct this problem the administration is attempting to come up with two ways small businesses can save on coverage.
One way provides tax write offs to help lower the cost burden of health coverage. And the other way is the administration containing the costs of health coverage to begin with. No one wants to pay into the system when it is broken, meaning the costs continue to inflate to the point of not being able to afford them.
Over all, the study estimates that the proposals under debate could save small businesses anywhere from $546 billion to $855 billion over the next decade.