The Economic Impact of Healthcare Reform on Small Business
June 2009
A new report released by the Small Business Majority compares the impacts of three health care reform scenarios on small businesses by applying the Gruber Microsimulation Model (GMSIM). Small businesses are struggling under the current health care system, and the report concludes that the reform options being debated in Washington will likely save small businesses money, protect wages and jobs, and encourage small business owners to reinvest in and grow our economy.
Conducted by Massachusetts Institute of Technology economist Jonathan Gruber, the study shows that without reform, small businesses will lose both jobs and profits as health costs continue to rise. The report compares the current situation with three reform options with varying levels of employer involvement and government support through payments and tax credits. All three reform scenarios would dramatically reduce the cost of providing health insurance to small business employees, save jobs, preserve wages, bolster profits and competition, and ease or eliminate, "job lock."
The New York Times has also published an article, "Savings for Small Business in Health Plan" about the report.