Subscribe to Money Morning get daily headlines subscribe now! Money Morning Private Briefing today's private briefing Access Your Profit Alerts

Obamacare Facts: 65% of Small Businesses Face Disruptive Rate Hikes

Damaging Obamacare facts regarding the impact on the nation's employers just keep on coming.

This one will ultimately affect 11 million U.S workers employed by small businesses.

Obamacare factsLast week, the Office of the Actuary for the Centers for Medicare & Medicaid Services put out a report predicting that 65% of small businesses are likely to face health insurance premium increases as a result of the healthcare law.

CMS assumes the business owners will pass on these increases to employees, the most probable reaction.

Approximately 17 million Americans work for small businesses, defined as those having 50 or fewer employees. Based on its projections, CMS said 11 million of those workers would probably see increases in their healthcare rates, while 6 million would see a reduction.

This news follows closely on the heels of a Congressional Budget Office (CBO) report that predicted the Affordable Care Act would result in 2.5 million fewer full-time jobs by 2023.

And the Obamacare facts regarding the 4.7 million-plus Americans in the individual market that had their policies canceled despite U.S. President Barack Obama's promise that "if you like your healthcare plan, you can keep it" is well documented.

While many had suspected that small businesses would get hit hard by the health insurance changes that Obamacare requires, the CMS report surprised just about everyone.

Critics were quick to lash out at the news.

"The idea that Obamacare was going to somehow reduce health insurance costs was a complete fiction from the start," Small Business & Entrepreneurship Council Chief Economist Ray Keating told FOX Business. "The hard realities of rising costs are becoming increasingly clear to all, with small businesses and their employees getting hit hard. It's more bad news for economic growth and job creation."

Democratic leaders, obviously worried about how such Obamacare facts will affect the November mid-term elections, tried to downplay the report.

"This report is the latest instance of House Republicans attempting to peddle half-truths and incomplete data," said Drew Hammill, spokesman for House Minority Leader Nancy Pelosi, D-CA.

But it's going to be hard for the Democrats to explain away an official government report from one of the agencies responsible for implementing the healthcare law.

And those headline statistics are just the tip of an ugly iceberg…

Join the conversation. Click here to jump to comments…

Leave a Reply

Your email address will not be published. Required fields are marked *

Some HTML is OK