Letters to the Editor

July 10, 2013

David Chase: Insurance exchange still happening

The Obama administration made big news last week when it announced it will delay until 2015 the requirement in the health-care law that employers with more than 50 employees offer insurance.

This requirement has generated huge amounts of interest since the law passed, with one talking head after another bemoaning it as a job-killer for small businesses.

But the truth is that the requirement, and its delay, will have no impact on most small firms.

Ninety-six percent of businesses have fewer than 50 employees and were already exempt. For these employers, delaying the requirement means nothing. Another 96 percent of businesses with more than 50 employees already offer insurance. Only the 4 percent of larger employers that do not offer health insurance will be impacted.

The most important provisions in the law for small businesses, such as health insurance exchanges, are still moving full-steam ahead. These marketplaces, coming online in January 2014, impact entrepreneurs much more significantly and will allow them to pool their buying power to help drive down coverage costs.

Hopefully, the exchanges will become the next big news story. It wouldn't hurt for the millions of entrepreneurs who will benefit from them to hear all about it.

DAVID CHASE

California director, Small Business Majority

Sacramento

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