SBM: Health Insurance Helps Boost the Bottom Line of Small Businesses
June 22, 2011
According to John Arensmeyer, founder and CEO of Small Business Majority, many small business owners offer health insurance coverage because not only does it hone their competitive edge, but also aids in recruitment of new staff and retaining current employees. The Affordable Care Act (ACA) may make insurance coverage more affordable for many small businesses through health insurance exchanges allowing small businesses to purchase lower-cost, higher quality plans. This perspective stands in contrast to a recent McKinsey & Co. study, which claimed that there will be a 30 percent decrease in employer-sponsored health insurance due to the passage of the ACA. In addition, the McKinsey report appears to be an outlier in research on this topic. According to Arensmeyer, the report also ignores the fact that employers have been dropping health coverage benefits under the status quo, and the numbers will increase without reform.