Few small Valley firms know benefits of health care law

Janna Rodriguez, one of the owners of J&R Tacos in Merced, wants to learn more about the specific provisions in the federal health care law designed to help small businesses such as hers.

Her restaurant, which opened almost five years ago, employs eight part-time employees — and none of them receive health care benefits.

Rodriguez said if her business were eligible to get help from the federal government to cover the costs of health insurance, she'd probably take advantage of it.

"We definitely want to keep them around and healthy as much as we can," she said of her employees. "I always try to treat my employees as part of the company and not just as somebody who works there. We are all growing together. I would be more than happy to be able to provide insurance for them."

Numerous studies conducted in California have revealed that small-business owners, including those in the Central Valley, don't know what they're missing with the federal health care law.

They're especially unaware of provisions in the law that affect their status — tiny but mighty economic engines in their communities.

Two key provisions

The Patient Protection and Affordable Care Act was signed into law a little more than a year ago by President Barack Obama. Two provisions in the law can benefit small businesses: tax credits that help small businesses cover the costs of health care for their employees; and the health benefit exchange, which is designed to allow small businesses and individuals to get better bargaining for insurance deals.

Each state would establish a health benefit exchange; these are scheduled to be launched in 2014.

Elizabeth Echols, regional administrator of the U.S. Small Business Administration, said there are about 500,000 small businesses in the state eligible for the tax credits. Officials don't know if many of those businesses will take advantage of the tax credits, but there are signs a few companies are.

Some 57 percent of small businesses statewide are unfamiliar with the small- business tax credits, and 62 percent haven't heard of the health benefits exchange the state is establishing. That's according to a 2011 survey conducted by Pacific Community Ventures, an organization that helps businesses to create jobs in low-income communities.

Nearly half — 48 percent — of Central Valley respondents indicated they were unaware of provisions in the law that are geared toward small businesses, the study found. And 73 percent of the employers in the Valley said they provide health insurance for some of their employees.

For that survey, 804 small-business owners were interviewed. The organization's Ben Thornley said owners were selected randomly.

The results didn't surprise him. They're consistent with those of national surveys.

"I think that the thing that was surprising was the (number) of small-business owners who were eager to learn more about the provisions that were designed to help them," he said.

Still, he said, the results represent "a call for action" for the organization "to get out there and educate small businesses."

Thornley believes that a lot of the discussion around the federal health care law has been dominated by Republicans, members of the tea party and others who dislike it. He said the nonprofit is trying to soft-pedal the politics and enable small employers to learn more about the law and how it can benefit them.

Overall, the study indicated that small businesses are interested in the provisions, but there's a level of frustration because they don't have the information, Thornley said. The survey was paid for by The California Endowment. (Editor's note: The California Endowment has given a grant to the Sun-Star for the position of health care reporter.)