This morning, over at the NYT, an article appeared entitled, “Small Business Faces Sharp Rise in Costs of Health Care” http://www.nytimes.com/...
According to the article, small businesses are facing around a 15% increase in the cost of premiums. For me this just highlights the fact that small businesses are in desperate need of a robust public option-in fact a robust public option could save the small business community millions in just the first year. How? Check it out:
First and foremost, small businesses could be assured that premiums paid into a public option will never be paid out in the form a a million dollar bonus to some health care executive. This already means some type of savings can be counted on in the long haul. At this time, many small businesses can only cover their workers, as well as their own families, by providing extremely bare bones policies - often representing a humanitarian philosophy rather than a real substantial package of health care benefits. Attempting to provide workers with solid benefits through the private insurance sector would break many a small town diner, corner store, or specialty shop.
On the other hand, a robust public option would provide small businesses to compete in the labor market on a more level playing field. This would enable small businesses to attract workers and keep though workers through a commitment beyond the simple paycheck. In fact, with health care as an added perk, small businesses have a better shot at retaining workers and thereby avoiding the training costs and other expenses associated with frequent turnover - these costs represent a very disproportionate cost to small businesses that often operate with very slim and labor intensive profit margins.
A robust public option represents a terrific business opportunity for small businesses in the US. Small businesses could save on premiums and increase health care services for workers. Ultimately this would drive down health care costs of private insurers as they are forced to do exactly what a small business much do - Compete! It seems to me that a robust public option will change the face of small businesses in the US. It will be possible to maintain a stable and healthy workforce. It will serve to give new life to the social contact that used to exist in small business, often family-operated with a few outside hires.
I just don’t know what could be more American and helpful to small businesses than a robust public option.