22 March 2010
Now that the healthcare reform bill has finally past, a lot of healthcare lobbyists have likely lost their jobs. But for many of us in the small enterprise market, healthcare reform is good news. Jobs were at the center of the healthcare reform debate. Depending on whose side you were on, jobs were either going to be created or destroyed. With the ink still drying on the newly passed bill, so far, it is good news for the job market.
This morning, The Hill is blogging that healthcare reform is a jobs bill, according to Rep. Paul Hodes (D-N.H.). Small businesses, who have been negatively impacted by health premium rate increases, will benefit the most, he argues. By joining pools, mall businesses will now be able to purchase healthcare coverage at the same rates as large businesses, resulting in significant savings in health insurance costs. While insurance pools may only save one to four percent on today’s healthcare insurance costs, tax benefits of up to 50 percent will be available. Claims to cover the healthcare costs of retirees may be reimbursed for up to 80 percent of the costs.
By stimulating small businesses, job growth will ensue. Healthcare benefits have always been the number one reason that employees choose large over smaller firms. Job seekers can now extend their job search to more small firms while small firms will benefit from a larger pool of qualified candidates. The Small Business Administration (SBA) reports that 64 percent of job growth came from the small business sector over the last decade.
The biggest boon for the workforce, and another plus for small business, is the ability of employees to change jobs without losing healthcare benefits.