Small Businesses Unsure About State Health Reform Plans

As several states "look to shrink the swelling ranks" of the uninsured, the "crucial test for one approach gaining favor with policymakers is likely to be its impact on small business," the Wall Street Journal reports.

Massachusetts, Vermont, California, Pennsylvania and Illinois are among the states that have implemented, or are considering, plans to require employers either to provide health benefits to their workers or to make annual payments to help cover the uninsured.

Many business groups oppose the plans, saying that the requirements could hurt small businesses by forcing them to raise prices or lay off workers. However, a "closer look suggests that while some small businesses might be squeezed, a great number would be exempt from the rules," the Journal reports.

In addition, "many businesses and self-employed workers could even benefit by dropping their current health plans and picking up cheaper coverage through state-sponsored programs," according to the Journal.

Stuart Altman, dean of the Heller School for Social Policy and Management at Brandeis University, said, "The new reforms actually help small businesses a lot more than hurt them." He added that companies "that don't have insurance often don't have it because it's too expensive. This gives them another option" (Spors, Wall Street Journal, 4/9).