Small Businesses in the Commonwealth Look Forward to Lower Healthcare Costs with the Passage of Reinsurance Bill
Statement from Awesta Sarkash, Government Affairs Manager for Small Business Majority, on the passage of HB 2332 in the Virginia Assembly
"We are pleased by this weekend’s passage of HB 2332 to establish a state reinsurance program, which will help stabilize premiums in the individual marketplace. This is particularly important for small business owners right now as they continue to experience financial setbacks from the pandemic.
We know from our research that healthcare is one of the most challenging costs for small businesses. Establishing a state reinsurance program will help address this by lowering premiums in the individual marketplace, where many small business owners, employees and self-employed entrepreneurs access health coverage. In fact, more than half of all ACA marketplace enrollees nationwide own or work for a small business.
Implementing a state reinsurance program is expected to lower premium costs by up to 20% for individuals who rely on the ACA marketplace for coverage. Most importantly, stabilizing premiums would allow small business owners to put extra dollars towards their business, especially as many rebuild in the wake of COVID-19. A state reinsurance program will also help small business owners and employees who have previously been unable to afford health coverage on their own.
The passage of HB 2332 is a critical step towards bolstering the health and financial vitality of our small business community. Once this program is implemented, small business owners will benefit from lower healthcare costs, and we hope Governor Northam signs this into law quickly.”
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 80,000 small businesses and 1,000 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.