Survey of Small Businesses Sees Pain Ahead With Obamacare

An overwhelming majority of small-business owners expect that Obamacare will result in premium increases, but not better care, according to a survey by the National Federation of Independent Business.

The study found that 12 percent of respondents said their health plan is or will be on the chopping block as the federal Affordable Care Act moves closer to implementation.

Among the other findings, the study found that the number of small employers (those employing 50 or fewer) that provide coverage remains largely unchanged (42 percent) from the number offering prior to the passage of ACA.

"This suggests that the law did not provide significant reason for non-offering employers to begin covering employees. Small employers who do offer health insurance are also unlikely to drop their coverage over the next 12 months. Generally speaking, employers that offer health insurance have a far more pessimistic view of PPACA and its anticipated effects, as compared to those who do not offer insurance," the study stated.

Of the small employers currently offering coverage, 20 percent expect to significantly change their benefit package and/or their employees premium cost-share the next time they renew their health-insurance plans. Almost all expected significant changes involving a decrease in benefits, an increase in employee cost-share, or both.

Some 87 percent of non-offering employers said they are either not too likely or not at all likely to be offering coverage a year from now, suggesting that the laws incentives to providing coverage are ineffective.

See details and methodology of the study here.