Small businesses in US play a major role in economy and they are a major source of innovation and job growth. Small businesses are facing many troubles because of current health care system in US. There was also a recommendation by the Council of Economic Advisers to health care system and they also discussed the impact that it was having on implementation of health care system in small businesses.
As per the current draft versions of the House and Senate legislation, the small businesses will be able to purchase health insurance through an insurance exchange. They will be allowed to choose from qualified insurance plans which are offered in their geographic area. They will be also provided with transparent data on premiums and services which is covered by each plan.
As per the current draft bills which provides significant tax credits to small business firms which are either continuing to provide health insurance to their employees or have started to do so for the first time.
A financial incentive will be given by both the House and the Senate bills to medium and large firms who are providing health insurance coverage to their employees through pay-or-play provisions.
Subsidies for Employees
The insurance exchange will also give better options for the employees in the small businesses which do not offer insurance. With the help of this under the consideration of legislation, individuals or the families can enjoy benefits of improved health choices by the insurance exchange.
The high prices of health insurance in the non-group and small business markets will result in discouragement for the individuals who are planning to launch their own companies and will also decrease the interest and likelihood of individuals to work for small businesses.
Improvements in Workplace Productivity
By encouraging firms for providing insurance and also by creating a well functioning insurance exchange by expanding health insurance coverage may improve health of newly covered workers. Hence, it will increase productivity and absenteeism.