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	<title>HR Morning &#187; Small Business Majority</title>
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		<title>Study: Health reform a boon to small biz</title>
		<link>http://www.hrmorning.com/study-health-reform-a-boon-to-small-biz/</link>
		<comments>http://www.hrmorning.com/study-health-reform-a-boon-to-small-biz/#comments</comments>
		<pubDate>Fri, 19 Jun 2009 11:00:35 +0000</pubDate>
		<dc:creator>Jim Giuliano</dc:creator>
				<category><![CDATA[Behavior]]></category>
		<category><![CDATA[Employment law]]></category>
		<category><![CDATA[Health care]]></category>
		<category><![CDATA[Special Report]]></category>
		<category><![CDATA[Jonathan Gruber]]></category>
		<category><![CDATA[MIT]]></category>
		<category><![CDATA[Small Business Majority]]></category>

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		<description><![CDATA[
Based on the results of a study, an MIT economist insists that Obama-style healthcare reform would give small and midsize businesses a big boost. 
The economist, Jonathan Gruber, did the study for the Small Business Majority, a nonprofit healthcare advocacy group. The study was done against the backdrop of data indicating that small businesses in [...]]]></description>
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<p>Based on the results of a study, an MIT economist insists that Obama-style healthcare reform would give small and midsize businesses a big boost. <span id="more-2335"></span></p>
<p>The economist, Jonathan Gruber, did the study for the Small Business Majority, a nonprofit healthcare advocacy group. The study was done against the backdrop of data indicating that small businesses in the United States at one time were major providers of health coverage: 67% offered coverage to employees in 1995, compared to 38% in 2008.</p>
<p>Here are the conclusions of the study &#8212; and apparent benefits for small businesses under healthcare reform:</p>
<ul>
<li><strong>Reduced costs.</strong> Small businesses would pay less to provide health insurance to their employees.</li>
<li><strong>More jobs.</strong> The study concludes that if we stick with the current system, healthcare costs will cause a loss of  178,000 small-business jobs by 2018. Introducing reform would save about 120,000 of those jobs.</li>
<li><strong>Better wages.</strong> The study cites exploding healthcare costs as causing cuts in wages at small businesses. With reform bringing these costs down, more money would be left to pay wages.</li>
<li><strong>Better profits.</strong> Reform would bring down costs, thus increasing profits.</li>
<li><strong>Better applicants.</strong> Workers who feel tied to their jobs because they fear not finding comparable benefits would be freed up to change jobs. Small businesses providing health care would have a greater talent pool from which to choose employees.</li>
</ul>
<p>The study assumes three components of a  reform package, with variations:</p>
<ol>
<li>An obligation on some or all employers to contribute to employee coverage.</li>
<li>Penalty payments for those that don&#8217;t.</li>
<li>Tax credits for those that do.</li>
</ol>
<p>Here&#8217;s the <a href="http://smallbusinessmajority.org/pdfs/SBM-economic_impact_061009.pdf">full study</a>.</p>
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