If the hope is for real, sustained recovery, the still-healing U.S. economy can’t afford the Affordable Care Act, according to a new analysis.
The costs imposed by the ACA, better known as Obamacare, on small business will hurt hiring, employee compensation, and business growth, according to the report by National Center for Policy Analysis Senior Fellow Devon Herrick.
The NCPA is a nonprofit, nonpartisan public policy research organization based in Dallas.
“The Affordable Care Act contains sweeping changes to the employer-sponsored health insurance market,” Herrick said. “Though it was promoted as a way to lessen the problems small businesses experience in providing health coverage, many business owners report that the law is increasing their burdens.”
Herrick’s analysis finds employers are passing increased healthcare costs on to workers, raising co-payments, boosting the costs of dependent coverage, delaying hiring, and reducing work hours.
That’s a big hit to business at large. Nearly two-thirds of Americans with health coverage have employer-sponsored health insurance, which means much of the burden of complying with the ACA falls on the shoulders of business.