by Devon M. Herrick
National Center for Policy Analysis
June 12, 2014
Whereas large corporations typically self-insure – paying their employees' medical bills and hiring insurers to administer health benefits – small businesses purchase group health coverage from insurers and face cost-increasing regulations as they go through the annual ritual of renewing their coverage. Over the next few years, as regulations and mandates are finally implemented, Obamacare will affect how businesses operate – including hiring, employee compensation, growth and so forth. Though the law was promoted as a way to lessen the problems small businesses experience in providing health coverage, many business owners report that it is increasing their burden. Indeed, the Obama Administration itself says that two-thirds of small employers could see a jump in premiums due to provisions in the health care law. This trend is likely to continue.

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