obamacare
On April 1, the National Federation of Independent Business took issue with an op-ed in which U.S. Senate candidate Joe Sestak claimed that the Affordable Care Act had been "good for small business." We explained that nothing could be further from the truth.
Now, in addition to stories of spiking insurance premiums from our small business association members, there is clear evidence that Obamacare is bad for small business in a new report from the federal government. It is a list of all insurance companies requesting double-digit premium rate hikes on individual and small group plans for 2016. Many small business owners buy individual coverage, or have small group plans for employees. The report shows that four large Pennsylvania plans are asking for rate increases from 28 percent to 61 percent next year.
Insurance companies that guessed at what their costs would be in 2013 under the ACA are realizing just how much providing coverage on the exchange costs. That's because they have data after paying claims for two years. Some companies, in justifying rate increase requests, say they underestimated the amount of services people would use, especially those previously uninsured.
It's not clear if these rate hike requests will be approved, or how much more individuals and small business will have to pay next year. But it is clear that the Affordable Care Act is not bringing down costs, but forcing small business owners to pay higher and higher premiums or drop coverage for workers. Sestak must acknowledge that "Obamacare is a proven..." failure.
KEVIN SHIVERS, National Federation of Independent Business/PA executive state director