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How the Affordable Care Act Will Affect Small Businesses

Rumors are rampant, but there is a source for news about the impact that changes in health insurance will have on your small business.

Change May Be Coming

The Affordable Care Act is designed to help every American access quality, affordable health insurance. This law has been the source of great concern to many, and its impact has been widely debated. As with any issue that creates strong feelings, there are some opinions and rumors mixed with facts in the debate. This is true for both sides of the issue.

The law will have different impacts for businesses. The number of employees the business has will determine which requirements apply to the business. If you are self-employed with no employees, the law should provide access to guaranteed health insurance. This could be a benefit for many individuals, and could allow some individuals to leave jobs they have kept to maintain employer-provided health insurance.

In this way, the Act may allow for an increase in the number of small businesses. For businesses with employees, the impact of the Affordable Care Act will be greater. There will be a requirement for some employers to provide insurance. Many individuals may be eligible for government subsidies that will decrease the cost of insurance.

Obtain Reliable Information

Small businesses should not take actions based on rumors about how the law will change. They should obtain facts just as they would for any other decision. Reducing hours of employees could be an option for some, but it could also create problems. No decision should be made until the costs and benefits are fully understood.

The Affordable Care Act is controversial to some, and it is also the subject of emotional debate for others. As with most issues that create strong feelings, it is best to find unbiased information to understand what it will mean to your business. The Small Business Administration presents the facts without opinions on the Affordable Care Act.


Michael Carr is a small business expert who has been involved in the successful development of three small businesses.