NFIB report shows that 1 in 8 employers cutting their health care benefits due to reform law

Small Business Health InsuranceThe National Federation of Independent Business released a report the other day outlining the effect the Affordable Care Act will have on small businesses. Since the law was passed in 2010, there has been no shortage of controversy regarding its provisions. Supporters of the health care reform have staunchly asserted that the law will benefit small business as a whole by allowing them access to more affordable health care plans from the nation’s insurance companies. According to the NFIB report, however, employers may be cutting their health insurance plans because of the new law.

The report found that one in eight small businesses have put an end to their health care benefits since the Affordable Care Act became federal law. According to the report, the 14% fall in employer-offered benefits “is the first major consequence of the healthcare law that small-business owners feel.” Furthermore, the report shows that an additional 20% of small businesses are looking to make sweeping changes to their health insurance plans with the overwhelming majority looking to make cuts in some way.

The American Public Health Association refutes these findings, saying that they cannot be entirely accurate given the fact that the most prominent provisions of the new health care law have yet to take effect. The law is designed to have a positive effect when fully enacted and the effect of singular provisions can often be taken out of context, according to the APHA.

NFIB’s full report can be found here:




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