We are already confronted with a considerable provider shortage in our profession. Reducing Medicaid’s accessibility would only exacerbate our provider shortage. I urge federal policymakers to maintain Medicaid funding so that small businesses like ours have access to the workforce we need to serve our communities.
Small Business News
I urge federal policymakers to maintain Medicaid funding because it’s crucial to small business success. When small business employees and family members have access to the care they need, small businesses like mine are better able to thrive.
Only about half of small businesses offer their employees any amount of paid family or medical leave, according to a nationwide 2024 survey of 500 small business owners conducted by Lake Research Partners for the Small Business Majority and the National Partnership for Women & Families. And small businesses that do provide paid leave tend to offer much shorter durations than larger companies.
Study co-author David Chase - the vice president of policy and advocacy for Small Business Majority - said owners and employees are often in the same boat, when it comes to health coverage. "It's not an exaggeration to say we would see hundreds of thousands of small businesses shut their doors if the owners lost Medicaid coverage," said Chase…Melissa Colagrosso owns A Place to Grow Children's Center in Oak Hill, and said childcare access serves a critical function in local economies.
Janna Rodriguez owns Innovative Daycare Corp in Freeport. She said losing staff due to Medicaid cuts would have a domino effect. “If I lose even one staff member,” said Rodriguez, “I may have to either reduce childcare slots, turn away families, delay opening my second location, and increase tuition for working families who are already financially stretched.”
However, John Arensmeyer, who represents more than 85,000 small enterprises at the Small Business Majority, cautioned that the business tax relief is currently skewed to the wealthiest, top 5% of small businesses.
“Most notably, we would expect to see many small business workers have to leave their jobs, and even some small business owners close their firms, and go work for someone else in part because they will have lost their health benefits through Medicaid,” said David Chase, vice president of policy and advocacy at the Small Business Majority, in a statement.
“There is the inability to have any kind of technical assistance training, quasi-mentoring, or consulting,” says Vernita Whitaker Naylor, the founder of JEGroup Enterprise Group, which offers consulting and support services to small businesses. “There’s the inability to have any resources that they can talk to, someone to go to for financial support if they need help with lending or how to fill out loan applications. To know about any other type of programs that’s available to help small businesses.”
The letter is addressed to Sen. Mike Crapo (R-Idaho), the Chair of the Senate Committee on Finance, and is signed by the American Benefits Council (ABC), the ERISA Industry Committee (ERIC), Small Business Majority, the HR Policy Association, and six other organizations.
The Small Business Majority, a national small business organization, published a Voice of Main Street opinion poll series that gets responses mainly from micro-businesses — those with fewer than 10 employees — and marginalized communities. On April 30, it released a study that found half of the small businesses owners surveyed have attempted to gain access to capital, yet only 36% of those who tried secured funding. Over half applied for traditional bank loans or grants, while roughly 43% pursued SBA loans.