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Healthcare Bill May Be Spurring Small Businesses' Purchase of Coverage

Published on Dec 29, 2010

Summary

Read our article, 'Healthcare Bill May Be Spurring Small Businesses' Purchase of Coverage' at 'Time to Start Up,' the small business blog by BizFilings.
The healthcare reform bill passed earlier this year may be prompting many small businesses to sign up to provide their employees with health benefits, according to the Los Angeles Times. The surge in accounts from small businesses among the nation's insurers may indicate that the reform bill is working to help provide a greater percentage of Americans with healthcare coverage. A major incentive for the hike is likely a tax credit stipulation in the new healthcare bill that insurance marketers have been touting aggressively as a reason to buy. The credit is targeted at small businesses as a means to offset the price of the coverage and is also one of the first laws from the reform bill to have already gone into effect. "We certainly did not expect to see this in this economy," Gary Claxton, who oversees an annual survey of employer health plans for the Kaiser Family Foundation, told the Los Angeles Times. "It's surprising." Healthcare coverage has been a matter of great contention among small businesses in recent years. As costs skyrocket - due largely to the country's declining health - small firms have been pressed to foot a bill that many simply cannot afford. With greater financial incentives to purchase coverage, it may become easier to start a small business.