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Making Dallas Even Better

Small Business Gets a Boost from Obamacare

Dallas-Fort Worth has the most dismal health coverage in Texas and one of the worst of major cities in the U.S. Currently 847,692 individuals—or 24 percent of the population—are uninsured, which places a huge burden on local taxpayers for social services and free hospital care (hello, Parkland!).

As Hilary Lau reports on D Healthcare Daily, one of the major holes in coverage is with businesses that employ 50 or fewer people. They normally don’t provide health insurance. (I guess we are the exception, since we did even when we were tinier than 50 people.) Under Obamacare, these businesses will now get cheaper than normal insurance and tax breaks to pay for it. But won’t those benefits also cost taxpayers? Yes, but less than what we’re already paying. If the current system had been left in place, healthcare would consume a third of economic output by 2040.

The vehicle for small business to sign up for employee coverage is something called the Small Business Health Options Program, which goes live on September 9. The new law kicks in on January 1 — unless Ted Cruz finds the votes to stop it, which he won’t.

  • David Malphurs

    What good is Obamacare for small businesses when they won’t be able to hire anybody to give the insurance to because of Obamacare? Now excuse me while I continue laughing over this article.

  • Mavdog

    “won’t be able to hire anybody to give the insurance to because of Obamacare”. Excuse me while I continue laughing over your inane post…

  • Avid Reader

    What is the basis for the comment, “healthcare would consume a third of economic output by 2040”? What percentage of economic output will healthcare consume in 2040 under Obamacare?

  • Mike

    The caveat here is that small businesses have to go through SHOP to be eligible, if you like your current plan you can’t keep it if you want these tax credits. The reason for this, presumably, is that in order for these exchanges to work people need to sign up for them, so the US government says hey, if you want tax credits you go through us. Seems fine for a private company to do that, but a little creepy and statist when the US govt does it. Question is, will these credits be enough of an incentive for small businesses who currently have plans to drop them and go through SHOP and for small business who don’t have plans to start offering them through SHOP? Who knows, guess we’ll find out.

  • David Malphurs

    Sorry to interfere with your blind devotion to Dear Leader. Now, grab your shovel and continue lock-stepping in line.

  • Dubious Brother

    Employer provided defined benefit health insurance is having the same affect on businesses as defined benefit pension plans. The best way to control costs is fire the old and hire the young or now just move as many as possible to part time.
    Employers being involved in health insurance is a by-product of our dumba$$ tax code where corporations are allowed to write off the costs no matter how high and individuals are not. Companies then must decide what benefits they will provide their employees which are dramatically different for young singles, child bearing year couples and older folks approaching retirement.
    Companies should use a defined contribution approach to health insurance and provide a certain amount of $$ which is not taxable to the employee and let the employees choose how to spend it on individual policies. With an individual policy you don’t have to worry about COBRA when you change jobs or pre-existing conditions including children born with health issues. Keep the government out of it.

  • Mavdog

    oh how creative of you , “Dear Leader”. very funny. thanks for continuing with the levity brought by your first post.

    I do need that shovel that you suggested to get through the pile of BS you laid with lines such as “small businesss..won’t be able to hire anybody…because of Obamacare”. Very revealing that you lack a coherent explanation for your rhetoric.

    thanks for the laugh.

  • AmyS

    The credit has a two year limit. If a company grows larger than 10 full time employees OR exceeds an average worker wage of $25,000 per year, it is scaled back. This is not a subsidy for high wage paying small companies, but could advantage a small startup whose owners/employees are working for sweat equity in lieu of wages.

    As mentioned above, more covered persons would result in less medicare costs. Does it mean Parkland would benefit? Not necessarily. Those covered would have the right to chose a different hospital. Which might mean lowered billings for Parkland. Maybe.

    But maybe not until the personal penalty exceeds the cost of insurance premiums.

  • Buddy

    Delusional liberal’s would be funny if they weren’t running our country now.