The official White House website says that all Americans will now have access to affordable medical care, and that small business owners need not worry about rising costs:
The proposal will also provide tens of billions in tax credits for small business owners to make insurance coverage more affordable. Small businesses will also have a new option of purchasing insurance through the exchanges. By pooling their resources in the new insurance marketplace, small business owners will lower their costs and have the same choices that big corporations and unions enjoy.
That’s all well and good, but as the National Bureau of Economic Research sees it, we may end up with less people working. In a paper published this month, three of the think tank’s researchers concluded, “Our results appear to indicate that the soon-to-be-enacted health-care reform may cause substantial declines in aggregate employment.” What does that mean? Small businesses aren’t going to go for the “pooling” option; they’ll just hire less people, and provide less people with health insurance. (more…)