SmallBusinessNewz

As a proposed health care reform bill sits in the Senate, many small businesses are wondering how they would be impacted if it were passed. According to the National Federation of Independent Business (NFIB), the increasing cost of health care is the No. 1 problem for businesses. But would this bill provide a solution to the problem? Not every American thinks it would, including some small business groups.

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A recent survey from the Gallup Poll revealed that 49 percent of Americans believed health care costs would worsen if the bill were passed. The survey also found that 39 percent of Americans believe the quality of the care would worsen as well.

As detailed in the above video, Biz Journals released a report specifying a few provisions that would directly affect small businesses. According to the report, the House bill would establish national health insurance exchanges in which small businesses and people without insurance could look for coverage. Although the exchange would include a government-run plan, states or regions could also submit their own offerings.

The exchanges would be available to businesses with up to 25 employees in 2013. In 2014, the number of employees could increase to 50 and on up to 100 by 2015.

Although the Congressional Budget Office estimates that 30 million Americans would be covered through the exchanges by 2019, the NFIB believes the exchanges would only provide a minimum level of insurance benefits. They also believe it would cost businesses even more than what they are currently paying.

If the bill were passed, a payroll tax of up to 8 percent would be issued to employers with annual payrolls of $500,000 or more, in order to provide their employees with health insurance. However, employers whose coverage is not affordable for workers would also be required to pay the tax to cover the cost of the government-funded coverage given to those workers through the exchange.

The employer mandate portion of the bill would demand employers to pay 72.5 percent toward the cost of individual plans and 65 percent toward the cost of family plans.

In order to pay for the bill, individuals making $500,000 or more, would be given a surtax of 5.4 percent. While not every small business would be affected by this tax, it could prevent the ones it does affect from creating new jobs.

Based upon these provisions, how would your business be impacted?