Presentation on theme: "The Economic Impact of Healthcare Reform on Small Business Presentation by Ben Geyerhahn Small Business Majority."— Presentation transcript:
The Economic Impact of Healthcare Reform on Small Business Presentation by Ben Geyerhahn Small Business Majority
Small Business Majority is a national nonprofit organization, founded and run by small business owners, that brings the voice of America’s 28 million small businesses to the public policy table. SBM is focused on solving the single biggest problem facing small businesses today: the skyrocketing cost of healthcare. SBM uses scientific research to understand and represent the interests and needs of all small businesses, from sole proprietors to 100-person companies.
Why Did We Commission this Study? More than any other sector of the economy, small business suffers from our broken healthcare system. Spiraling costs and inadequate access to high-quality healthcare are slashing profits and hurting growth. The cost of doing nothing is simply too high to contemplate.
Small Business and Healthcare Approximately 70% of those people who are working full- time and have no healthcare work in small business. There is an inverse relationship between the size of a company and the likelihood that it offers healthcare. In New York, small businesses on average pay 18% of payroll to satisfy health insurance premiums.
The Study SBM commissioned MIT economist Jonathan Gruber to model the impact of 4 reform scenarios on small business costs, jobs, wages and profits compared with that of no reform. Dr. Gruber analyzed several reform scenarios from across the ideological spectrum: Baseline: no change to current system Two Shared Responsibility Scenarios Single-Payer Market Reform
The Perspectives of NY Small Businesses Characteristics that drive healthcare premium decisions: –Size: Smaller businesses are less tolerant of premium increases and additional paperwork driven by plan complexity. –Profit margin: Businesses with high profit margins view healthcare as a tool to attract employees where low profit-margin businesses view healthcare through the prism of cost alone. –Firms offering and not offering health insurance: The impact of taxes, fines or other devices utilized by various healthcare reforms varies substantially based on whether a business is or is not offering health insurance. For those not offering, this is a cost that can derail them; for those that are, these fines or taxes are a nonissue.
Detailed Findings Cost of Health Benefits
Detailed Findings Cost Savings Under Reform
Detailed Findings Job Loss Due to Health Costs
Detailed Findings Job Loss Impact Under Reform
Detailed Findings Wages Lost Due to Healthcare Costs
Detailed Findings Wages Saved Under Reform Scenario
Detailed Findings Profits Lost Due to Healthcare Costs
Detailed Findings Profit Savings Under Reform
Conclusion America’s small businesses are suffering under the current healthcare system A system based on shared responsibility among individuals, businesses, government and the healthcare industry that: Substantially contains cost Guarantees access to coverage Offers appropriate assistance to small businesses will save small businesses hundreds of billions of dollars in costs, protect small business wages and jobs and allow small business owners to reinvest in and grow our economy.