Catherwood LibraryILR School

This year, because of the Affordable Care Act, it is anticipated that many employers with fewer than 50 employees will be dropping the health insurance they had traditionally provided. The act of ?dumping? employees onto the state and federal healthcare exchanges is not limited to small employers, but Obama care exempts employers with less than 50 employees from having to contribute to their employees? health insurance at all. The number of small businesses that provided health insurance coverage has steadily declined from 47% in 2001 to less than 38% today. Many small business owners are also finding that almost all of their employees, those earning up to four times the federal poverty level, are eligible for some kind of health insurance subsidy if they do not offer a plan through work. Employees may not reap all the benefits that managers project because health insurance plans paid for through the exchanges are paid with after-tax dollars, unlike the premiums paid through an employer-sponsored plan.