Saving Money for Families and Small Businesses

Whether you’re an individual or a small business owner, you know how difficult it can be to make ends meet. Over ten years, between 1999-2009, health insurance premiums have more than doubled for families, rising by $7,500 for the average employer-based family plan.  Skyrocketing costs have also made it increasingly difficult for small businesses to provide insurance to workers; the percentage of small employers offering health insurance dropped from 65 to 59 percent during that same ten-year period. 

Because of the health care law, some relief is in sight.  A new report released today by HHS lays out how much families and businesses could save on health insurance.  Starting in 2014, a low-income family of four could save up to $14,900 and businesses will benefit from the savings and tax credits in the new law.

The report finds that, compared to what they would have paid without the law:

• Middle-class families purchasing private insurance in the new State-based Health Insurance Exchanges could save as much as $2,300 per year in 2014.  
• Tax credits provided by the Affordable Care Act will lead to even greater savings.  For example, in 2014, a family of four with an income of $33,525 could save as much as $14,900 per year since they will also qualify for tax credits and reduced cost sharing.
• In 2014, small businesses, on average, could save up to $350 per family policy and many may be eligible for tax credits of up to 50 percent of their premiums.
• The tax credits are already available to small businesses, and cover 35 percent of their premiums.   For example, a firm with 10 workers who earn an average of $20,000 annually could currently receive credits of $35,000 annually.   These tax credits could save small businesses $6 billion in 2010 and 2011.
• All businesses will likely see lower premiums of $2,000 per family by 2019, which could generate millions of dollars in savings.

For far too long, skyrocketing health care costs have burdened too many families and businesses, forcing millions to choose between health coverage and financial security.  That’s not going to change overnight, and there is more work to be done.  But thanks to health reform, families and businesses are already beginning to see more freedom, choices, and savings in their health care coverage.  

You can read the report’s findings here.