How Small-Business Owners Are Coping With the Health Law (So Far)

Via The Wall Street Journal

The health-care law is changing the way many small employers run their businesses, for better or worse. Some are curbing hiring plans or making staff cuts, while others are revamping benefit plans.

As part of its "Face of the Affordable Care Act" multimedia feature, the Wall Street Journal in April asked small-business owners to share how they're coping with the law. Below, excerpts from some of the responses:

As a solo business owner who has a service-oriented business, I have been helped immensely by the Affordable Care Act. I had a spinal fusion in 2013 and was out of work for more than two months. I still had to pay rent, bills, health insurance premiums, business phone and YellowPages ads, and all other business and personal expenses, while receiving no income. I am still thousands in the hole and wouldn't be able to afford health insurance now without the ACA! It came not a moment too soon! -- Cynthia Hull, Acupuncture and Massage Wellness Center, Flagstaff, Ariz.

Our 440-employee business just received its initial premium from United Healthcare for our July 1 renewal. The renewal premium represents a 29% increase over the current premium. UHC indicated that our premiums are going up 11% to bring our deductibles and out of pocket maximums in line with the provisions of the ACA. In other words, without the ACA, our premiums would be going up approximately 18%, not 29%. Our strategy to this point has been to offer our employees a high-deductible plan and then fund part of the deductible with a company-sponsored Health Reimbursement Arrangement. This strategy no longer works under Obamacare. The premium increase excludes new fees (i.e. taxes) that we will have to pay -- $63.50 per member per year. For our company, that's another $22,797. The impact of bringing our plan design in compliance with the ACA was greater than I expected. -- Rod Winter, Specialized Industries, New Berlin, Wis.

My seven-employee business carried top of the line health care, the best money could buy. We were cancelled and had to find new alternatives. There was nothing substandard about my policy whatsoever. The dishonesty behind 'You can keep your plan and your doctor' was so apparent after that experience. -- Richard Rand, The Northwest Center for Aesthetic Plastic Surgery, Seattle

We are just over the 50-employee mark, with 55 employees. I do not know how we are going to compete when many of our competitors are smaller and already have a pretty big advantage by paying employees off the books. This is just another blow to the already skyrocketing taxes, workman's compensation, liability insurance, etc. Customers don't care if our staff has health benefits. In fact, they would rather have a company who doesn't supply it because it is cheaper. Health premiums continue to go higher and higher. My fear is being able to offer competitive plans to recruit and retain quality people. I am afraid people will just leave our industry. -- Scott Neave, Neave Group Outdoor Solutions, Westchester County, N.Y.

We employ fewer than 10 people and have never offered health insurance because we could not easily get a group plan at a reasonable cost. Now with Obamacare, our employees can purchase insurance coverage and we as an employer will make a contribution towards the premium. Employees get to choose the plan they like and contribute towards its cost. Our employees are happy that now they can get an affordable health plan and we finally have our employees covered. -- Amir Lakhani, Pediatric Dentistry, Allentown, Penn.