Entrepreneur Introduces Solution to ObamaCare's Heavy Financial Burden for Small Businesses and Offers Savings to All Small Businesses, Even Those with Fewer Employees

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Considering the upcoming federal regulations under the Healthcare Reform Act, which presently require small businesses with 50 or more employees to provide health insurance to their employees no later than January 1, 2014, while shouldering the majority of the financial burden themselves, a small business owner recognized the need for small businesses to join together to have the purchasing power and negotiating power that larger companies have due to the larger numbers of individuals being covered in one group. Larger numbers grouped together mean more choices, better coverage and better insurance rates than are currently offered to small businesses separately. Traditionally, smaller companies pay the most for the least coverage and highest deductibles, while larger companies pay less for more comprehensive coverage and at least an option of lower deductibles. Membership numbers must be raised soon in order to meet the federal requirement of providing this coverage by January 1, 2014.

"I'm not getting rid of all of healthcare reform" - Mitt Romney, NBC's "Meet the Press"

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The Small Business Health Insurance Association was created in order to join multiple small businesses of all sizes, as well as sole proprietors, in order to secure that negotiating power with the insurance companies to obtain the best possible insurance rates and coverage by having a larger group insured under one group plan and one group rate.

Due to the Healthcare Reform Act, regardless of which candidate wins the Presidential election in November, changes have been set in motion in the insurance and healthcare industries that will forever change the way all Americans are covered. President Obama will likely stay on track with the Healthcare Reform Act as it is. However, even Mitt Romney has stated that he would not change everything in the Act. It is in the best interests of small businesses, who have the largest percentage of revenue at stake in these changes, to band together for collective savings.

According to the U.S. Health & Human Services website, "Having health insurance is valuable for a number of reasons. People who are insured are protected against uncertain and high medical expenses and are more likely to receive needed and appropriate health care. In addition, having health insurance is associated with improved health outcomes and lower mortality, so employees with health insurance are more likely to be productive workers." Therefore, it is not in the best interest for small businesses to lay-off workers in order to have a total under 50 to avoid being subject to the federal mandates in the Act. This would add stress to the remaining workers, causing a loss of employees due to both resignation and illness. Joining into one larger group is the most favorable option for the employers and employees.

Membership and coverage are being offered nation-wide. This coverage is not in place yet, as membership numbers are needed to gain the desired number advantage and due to the impending changes that insurers will be putting into place as a direct result of the Healthcare Reform Act and the new regulations they will have to follow. However, it is planned that open enrollment for all will occur no later than October 2013 in order to be in effect on January 1, 2014.

In addition to medical benefits, the Association intends to provide options for discounted dental and vision coverage. As membership expands, additional discounted services and benefits will be added to give small businesses optimal benefits and services, such as discounts on office supplies and courier services. For more information, go to http://www.sbhia.com.

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Kath Gonzales
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