Tuesday, March 5, 2013

An Interesting Editorial

In today’s Boston Globe, the newspaper cites an important issue that could soon affect many of the small businesses operating within the Commonwealth.  The editorial “Mass. Needs Obamacare waiver for small-business health plans” highlights major discrepancies between Massachusetts’ mandated health care law and the Federal Government’s Obamacare, which could cost small businesses substantially more money to be compliant with the law.

One of the major differences between state and federal law is that Massachusetts allows insurance companies to use different factors to evaluate and even reduce premiums for the purchasing company.  Unfortunately, Obamacare would eliminate the use of those factors; including:

-          Discounts for small businesses that join a health-care cooperative;

-          Discounts if a company offers a wellness program; and

-          Discounts for how many are employed and are currently participating in a company’s health plan.

Without a waiver granted by the Federal Government allowing Massachusetts to include these factors and others, small businesses will struggle to afford “affordable” healthcare, and could face a reduction in gainfully employed staff.

To read today’s Globe editorial, please click here.