While the healthcare reform effort may have taken years to push through Congress, it took less than 48 hours for President Obama to sign the measure into law.  Late Sunday night, the U.S. House of Representatives voted 219-212 in favor of the major overhaul of the nation’s healthcare system.  Not a single Republican in the House voted in favor of the measure.  

The new law – which will cost well over $900 billion over the next ten years – was strongly opposed by Republicans in both the House and Senate who derided the measure as far too costly and largely unpopular with the American public.  

AWMA shares the concerns of those opposed to the new law.  Among the concerns are the following provisions that could impact your business:
 

• Employer Mandate – although proponents argue there is no real “employer mandate” the new law includes a new mandate on employers forcing them to provide either a government-mandated level of coverage or face significant new taxes.  Essentially, employers with more than 50 employees must provide health insurance or pay a fine of $2000 per worker each year if any worker receives federal subsidies to purchase health insurance.   
• New Taxes – the new law would impose just under $500 billion in new taxes – many of which will impact small businesses.  Taxes such as the new Medicare surtax will hit small businesses that file as individuals.  And, while the new law provides for a so-called tax credit for small businesses it seems the tax credit will do little to make purchasing insurance affordable for small businesses.  The credit is extremely restrictive and according to Congressional Budget Office analysis would only benefit 12 percent of the small business population.
   
• Although touted as putting the major tax burden on the health insurance companies – the new law calls for a new $6.7 annual tax on insurers – small businesses will in fact be paying for this new fee.  Insurers are not going to simply absorb this new, expensive tax and health insurers have made clear that these new costs will be passed along to the customers.  Some have indicated the tax will increase health insurance premiums by at least $500 per year.
   
• Every health plan will be required to meet certain standards set by the federal government - these standards are expected to increase health insurance on the individual market by anywhere from 10 to 13 percent according to Congressional Budget Office estimates.
   
• The new law does not offer the American public the opportunity to purchase health insurance across state lines or allow small business pooling arrangements that could increase coverage and reduce costs.

Republicans have vowed to continue to oppose this healthcare reform measure and to enact amendments that would correct the many misguided provisions contained in this new law.  The measure passed by Congress represents a very one-sided, non-inclusive initiative that could end up costing small business – the back-bone of our nation’s economy - dearly.