STAY UPDATED!

Sign up to keep up
with the latest news
and research.

California Small Businesses and Healthcare

In March 2011, Small Business Majority and Pacific Community Ventures (PCV) released the results of a survey, commissioned by PCV, of 804 California small business owners with fewer than 20 employees on key provisions of the Affordable Care Act. It found that small business owners who currently don’t offer health insurance, along with those who do, are more likely to provide or continue to provide coverage because of the healthcare tax credits and state insurance exchange.

The poll found that a substantial number of respondents weren’t familiar with either provision of the healthcare law, but once provided with the information, said they are likely to take advantage of these provisions.

California Small Businesses and Healthcare
TOPLINES	PRESS RELEASE

 

California Listening Tour Report

In February 2011, Small Business Majority released a report on a listening tour it conducted from May 2010 to January 2011 with various California business groups in nine cities across the state. The tour was aimed at educating small business owners and organizations about the Patient Protection and Affordable Care Act, and to get their feedback on how best to move forward with the new healthcare law’s implementation.

The report found that small businesses in California overwhelmingly believe that healthcare costs are rising too fast and the healthcare system needs to be reformed. However, the majority of listening tour participants had very little knowledge about the new healthcare law or how it will impact their bottom line.

California Small Businesses and the Patient Protection and Affordable Care Act
FULL REPORT	PRESS RELEASE

 

Economic Opportunities For Small Busness Under AB 32

In October 2010, Small Business Majority released a report, “Economic Opportunities for Small Business Under AB 32,” that looked at the opportunities the state’s Global Warming Solutions Act provides for California’s small businesses. A careful review of industries impacted by AB 32 found that small businesses have significant opportunities to save on energy costs, attract new business from increased demand for the goods and services they offer and receive capital investments from the market incentive the legislation creates. The analysis concluded that California’s economy and workforce will grow from this landmark measure that sets new carbon emissions standards.

Economic Opportunities For Small Busness Under AB 32
FULL REPORT	EXECUTIVE SUMMARY
ADDENDUM	PRESS RELEASE

 

California Healthcare Tax Credit Study

Small businesses are the backbone of California’s economy. Across the state, there are more than 570,000 businesses that employ 25 workers or fewer. They’re your local diner, the hardware store down the street and your neighborhood mechanic. While small businesses have been serving us, our health care system has been failing them, making it difficult—if not impossible—to provide their workers with quality, affordable health coverage. Under the new healthcare reform law, businesses with fewer than 25 employees and average wages of less than $50,000 will be eligible to receive a tax credit for the health insurance they provide their employees. In July 2010, Small Business Majority and Families USA commissioned a study that found that nearly 80% of California small businesses will be eligible to receive a tax credit in 2010.

A Helping Hand for Small Businesses: Health Insurance Tax Credits
FULL REPORT	PRESS RELEASE

 

California Health Benefits Exchange

On February 6, 2012, Small Business Majority released "Making California's new healthcare exchange work for small businesses," a report detailing our three-part SHOP forum series in Sacramento. Health insurance exchanges—and the Small Business Health Options Program (SHOP) in particular—are the most important element of healthcare reform for small businesses.

Successes and failures of past state exchange models have shown that it takes time and consideration to build them well. To help facilitate the SHOP design process, we hosted discussion forums in Sacramento during October, November and January. At each forum, a panel of experts spoke to business advocates, government staff, brokers and other stakeholders about major aspects to consider when setting up an exchange that can work for California small businesses. The three topics discussed were: providing insurance at an appealing rate, providing valuable services to small businesses and constructing a successful marketing and outreach strategy. Our subsequent recommendations on how to create a robust exchange can be found in the report.

Making California’s new healthcare exchange work for small businesses

February 6, 2012 - Small Business Majority

 

California Health Benefits Exchange Board holds public meetings
The California Health Benefits Exchange Board is already at work planning for the new marketplace that will be available for small businesses in January 2014 to purchase private healthcare coverage. The Board held its first public meeting on April 20, 2011 in Sacramento and will continue to hold at least one public meeting per month. The public, including small business owners, will have an opportunity at every meeting to speak before the Board to express their suggestions on how to build a robust, competitive exchange. Small Business Majority will be attending each of these meetings to ensure that small businesses top concerns of affordability, choice and simplicity are being heard. For more information about the Exchange, including information about future public meetings, visit: www.healthexchange.ca.gov.

 

California’s establishment of health exchange sets example for the nation
On Sept. 30, 2010, Gov. Arnold Schwarzenegger signed legislation to create the state’s health insurance exchange—the most crucial component of healthcare reform for small businesses.

The exchange—a marketplace where small businesses and individuals can band together to purchase insurance—will lower small businesses’ healthcare costs and allow more of them and their employees to get quality healthcare coverage. While the exchange won’t go into effect until 2014, it was imperative the framework be created long before the deadline to give the state adequate time to implement the new law.

This new marketplace will allow insurance companies to compete on a level playing field to sell the best quality coverage at the most favorable price. The exchange will also relieve small businesses of their current administrative burdens by offering standardized, easily comparable products, and streamlining the information and billing processes via an efficient online communications system.

Small businesses pay 18% more for healthcare than large companies yet receive fewer benefits. In California, 60% of the uninsured are employed, and half of the four million workers who lack health insurance work for companies with fewer than 20 employees. An exchange will help rectify this. In California, 3.76 million small business employees and their dependents, along with 2.7 million self-employed people, will be eligible to purchase insurance through it.

A report released in February 2011 by the California Healthcare Foundation compares the California state health insurance exchange to provisions of the Affordable Care Act:

Health Benefit Exchange: California vs. Federal Provisions

February 2011 -California HealthCare Foundation

 

Healthcare Cost-Controls for Small Businesses

The California legislature is taking steps to enact legislation to help control costs for small businesses who purchase healthcare coverage in the small group market. The bill being considered, AB 1083, is co-sponsored by Small Business Majority and would conform state law to match some of the small business provisions that are part of the federal Affordable Care Act. The California bill would ban insurers from charging small businesses with higher premiums based on the health status of their workforce and place limits on how much employers can be charged for their older employees. The bill extends these provisions and other protections already on the books to the self-employed and businesses with 51-100 workers.

Preexisting Condition Insurance Plan for Californians

If you've been without health insurance for at least six months and have a preexisting condition, you might be able to enroll in the state's new Preexisting Condition Insurance Plan (formerly referred to as the high-risk pool). The state is now accepting applications. For more information, please visit www.pcip.ca.gov.