Will Small Business Health Insurance Benefit from an Exchange?
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But business owners are still worried - would such exchanges make small business health insurance any easier to afford?
The idea would be that should such a plan pass, consumers would be able to choose from a variety of medical health coverage plans. But opponents are arguing that just because the options are easier to understand doesn't mean that they'll cost any less.
Small business health insurance rates are notoriously high, and choices are limited since in many states the majority of insurance is offered by only a few big carriers. Like it says in the article, "small business owners frequently complain they when they have limited choice among insurers, they have little bargaining clout."
The result? For many employers small business health insurance plans have gone up as much as 29% in a single year.
The hope in Washington, of course, is that the millions of new health insurance customers will drive down costs, and lead to a more competitive market.
But the truth is that many people don't buy insurance because they think they don't need it. This brings the "legal mandate" issue into the equation - should the government require all American citizens to purchase health insurance, or face a legal penalty?
The legal mandate issue has fewer fans than the health insurance exchange does, but unless everyone is forced to purchase health care coverage, it isn't likely that small business health insurance is going to get any cheaper any time soon.