government
ACA poses no risks for American businesses, report says
NEWS IN BRIEF — Posted Oct. 29, 2012
The Affordable Care Act is not a threat to employer-sponsored insurance coverage, although midsize companies may experience the most noticeable cost increases under its provisions, according to an Urban Institute report released Oct. 8.
In the event the health system reform law had been fully implemented in 2012, total employer spending on health care would have increased by 2.2% and employer-sponsored coverage would have gone up by 2.7%, the report found. Small businesses actually would see the average costs of coverage go down, and costs per person for large businesses largely would be unaffected.
This is because larger companies already cover most employees and would continue to provide this coverage, the report stated. In the meantime, midsize businesses would experience a moderate uptick in costs per insured person, “reflecting penalties on as many as 5% of these employers who are not currently providing coverage,” the report stated.
Midsize and large companies would incur some increases in total spending as a result of expanding their coverage, with midsize businesses experiencing an overall increase of 9.5%, compared with 4.3% for large employers, according to the findings.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/10/29/gvbf1029.htm.
