The Effects of Health Reform on Small Businesses and Their Workers

The Effects of Health Reform on Small Businesses and Their Workers

This brief consolidates the results of several UI studies addressing the effects of the Affordable Care Act (ACA) on small firms.We find generally positive effects of the ACA on small employers and their workers.Employers with fewer than 50 workers will experience substantial savings on health costs; employers with 50 to 100 workers will seea very small cost increase.The smallest firms are expected to have higher offer rates, resulting in a small increase in employer coverage.Small firm workers and their families will reap substantial benefits from the Medicaid expansion and subsidies to low-income families.

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