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ANALYSIS PROJECTS THAT WITHOUT REFORM SMALL BUSINESSES WILL PAY NEARLY $2.4 TRILLION DOLLARS OVER THE NEXT 10 YEARS IN HEALTHCA


~ Report debunks myth that sharing responsibility for financing healthcare with small employers will further expand job loss ~
        

Sausalito, CA - Comprehensive health reform that includes employers paying a share of healthcare costs would provide a much-needed shot in the arm to America's small businesses, according to a new study being released on Friday, June 12, by the nonpartisan Small Business Majority.

The analysis, conducted by Massachusetts Institute of Technology economist Jonathan Gruber, uses an economic simulation model to gauge the impact of health reform on businesses with 100 or fewer employees.  The results show that proposals currently gaining traction among lawmakers - those that include a financing system of shared responsibility - would protect wages and curb job loss for people who work in small businesses, while saving hundreds of billions of dollars in healthcare costs for small business owners. 

The study compares the effects of three reform scenarios on small business and contrasts them with the impact of maintaining the current system, absent any reform.  Each scenario assumes a basic reform package that would control costs and enable all Americans to obtain coverage, but all three use a varying amount of tax credits for small employers who offer insurance, and differing payment levels from small employers who don't - all based on size of the business. The analysis shows that even under a scenario with limited support to small business owners, reform would still bring significant benefits. 

The results will show:
·       Shared responsibility will reduce the cost to small businesses of providing health insurance; 
·       Healthcare reform will save jobs; 
·       Healthcare reform will preserve wages for employees of small businesses; and 
·       Healthcare reform will bolster small business profits and competitiveness. 



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