Businesses Rate Health Care Costs Their Most ‘Critical’ Problem, 56% Call Obamacare ‘Major Challenge’

September 26, 2012 - 1:05 PM

More than one in five businesses (21%) are considering dropping employee health insurance due to Obamacare, and 59% are considering changing the coverage they offer, a new industry survey shows.

Two-thirds (67%) of small businesses and manufacturers say Obamacare will increase their health care costs, the survey of owners and top decision-makers by the National Federation of Independent Business (NFIB) and National Association of Manufacturers (NAM) shows.

Of those providing health insurance to their employees, 38% fear Obamacare will cause them increase the amount employees have to pay for coverage.

Small business owners and manufacturers see Obamacare as one of the most daunting problems facing their businesses today. Fully 56% rate Obamacare a major challenge, well above other issues like regulatory costs (36%), energy costs (39%) - and more than twice the threat of foreign competition (25%).

The cost of health care is the top problem facing small businesses today, a separate 2012 NFIB survey of small business concerns shows, with 52.3% of small businesses rating rising health care costs the most “critical” problem today.

NFIB analysis also shows that Obamacare’s health insurance tax (HIT) could cost up to a quarter million (249,000) private sector jobs.

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