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Federal Market Intelligence for Small Business |
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GOP debuts replacement for ObamacareThe Republicans’ proposal to repeal and replace Obamacare would bring big changes for small businesses and employees. House Majority Leader Paul Ryan introduced the GOP plan on March 6. President Trump has endorsed it, and is promoting it. The GOP plan removes the requirement that businesses with 50 or more workers provide insurance to their employees. They would no longer face penalties if they do not provide coverage. But the GOP plan also repeals Obamacare's health care tax credit, available to companies with fewer than 25 employees and average wages below $50,000. The credit covers up to 50% of the company’s health care premium costs for two years. For some small businesses with fewer than 50 employees, it could make it more difficult to provide coverage, according to Forbes. “If anything, the House bill would make it harder for those companies to offer coverage, or for their workers to get it on their own,” the Forbes article said. While the GOP bill may lower coverage costs for young employees, it likely would increase such costs for middle-aged and older workers and for workers with health conditions, according to an analysis by CNN Money. A bipartisan survey by Thumbtack of 14,000 small business entrepreneurs in January and February 2017--before the GOP plan was introduced--found that 55% wanted Congress to keep Obamacare in place. The House Small Business Committee, which held numerous hearings on Obamacare, has not issued any statements regarding the GOP plan. Neither has the National Federation of Independent Business (NFIB). The Small Business Majority has set up a website of companies reacting to the prospect of losing Obamacare.
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