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→Obamacare Effects on Small Businesses with 50-99 FTE
"The consequences for employers (and individual workers) who must purchase coverage are already becoming apparent. A 2014 survey of 148 insurance brokers by the investment firm Morgan Stanley found that rates in the small group market have risen substantially. For instance:
Premiums for firms renewing in 2014 jumped 11 percent in the small group market. For firms with coverage through BlueCross, the year-over-year renewing contract premium hike is nearly 16 percent. For individuals, the increase was similar - about 12 percent.
However, premium increases were much higher in some states than others. The survey found that since December 2012, rates for small employers grew 588 percent in Washington state, though this astounding increase is likely due to the small sample size and additional state regulations. Premiums rose 66 percent in Pennsylvania, 37 percent in California, 34 percent in Indiana, 30 percent in Kentucky and 29 percent in Colorado.
The Affordable Care Act is also affecting personnel decisions. A survey of more than 600 small business owners by the Society for Human Resource Management found that more than four-in-10 small business owners have delayed hiring due to uncertainty about the effects of the ACA. One in five reported they have cut the number of workers they employ. Employers are not required to offer coverage for employees who work less than 30 hours per week. Those employees are eligible for subsidized coverage in the health insurance exchange. Mercer reports that 12 percent of employers nationwide plan to reduce workers' hours as a result of Obamacare." [http://www.ncpa.org/pub/st356 NCPA]
In summary: "Employers have three ways to reduce the burden of the employer mandate: 1) limit the workforce to fewer than 50 workers; 2) limit the hours worked per week by some employees to fewer than 30 hours; or 3) fail to offer coverage and, thus, pay a $2,000 per (full-time) worker fine. These perverse economic incentives will cause many firms to avoid growing beyond 49 employees." [http://www.ncpa.org/pub/st356 NCPA]
==Obamacare Effects on Small Businesses with under 50 FTE==
