Energy and Commerce Committee Proposal to Undercut Medicaid, ACA Would Harm Small Businesses
Statement from Small Business Majority Founder & CEO John Arensmeyer about the impact that slashing Medicaid funds, changing ACA enrollment requirements would have on entrepreneurship
“A U.S. House Committee on Energy and Commerce proposal that would cut hundreds of billions of dollars from Medicaid threatens health insurance coverage for small business owners and their employees. We’re also concerned about a committee proposal that would implement stricter eligibility and income verification processes for ACA Marketplace enrollment. If these proposals become law, along with the expiration of premium tax credits that help make coverage purchased through the ACA Marketplace more affordable, the Congressional Budget Office estimates that nearly 14 million people would lose their health insurance.
Many do not realize the degree to which small businesses and their employees have benefited from Medicaid expansion and the ACA Marketplace. In fact, U.S. Census data revealed that more than 7 million small business owners and employees must rely on Medicaid for affordable healthcare coverage. When states expanded Medicaid eligibility between 2013 and 2022, Medicaid coverage increased by 2.5 million for employees of small businesses and 1.3 million among self-employed workers. Additionally, the uninsured rate of small business employees and self-employed individuals dropped to record lows in 2022 thanks in part to premium tax credit improvements and the expansion of Medicaid. As for the ACA Marketplace, more than half of all enrollees are small business owners, self-employed entrepreneurs or small business employees. What’s more, the ACA contributed to the number of uninsured self-employed entrepreneurs falling by 1.3 million between 2013 and 2022.
When small business owners lose access to health insurance, they do not save money – in many cases, they close their doors and go work for someone else who can offer them healthcare coverage. Given the clear link between access to health insurance and the American Dream, lawmakers should be looking for ways to help make insurance more affordable rather than less accessible for small businesses.”
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.
