President Obama’s healthcare reform has been the topic of heavy debate in recent weeks, especially among small businesses who have both a lot to gain and a lot to lose from such a reform. Of the 39 million Americans who do not have healthcare, an estimated one-third are employed by small businesses. The most recent Congressional proposal would mandate that any company with over $400,000 in payroll costs per year to offer employees healthcare or surrender a penalty totaling 8% of total annual payroll. Such a reform would exempt small businesses with payroll costs under $250,000, but would employ reduced penalties for those small businesses with payroll costs between $250,000 and $400,000.

The President’s Council of Economic Advisors reports that these health care reforms will benefit small businesses both by lowering their health care costs and by increasing coverage options for small business employees. A study by economist Jonathan Gruber of M.I.T. concluded that health care reform would benefit small businesses by streamlining the purchase of insurance and by lowering administrative expenses associated with insurance policies. Gruber’s statistical analysis concluded that health care reform would save small businesses between $546 and $855 billion over the next decade.

So, health care reform is a friend of small business, right? Unfortunately, the answer is a beautiful shade of gray. Analysts agree that in the short term, the proposed reform will actually cost small businesses $6.5 billion in profits this year alone. As a result of reform, small business profits in the US would not increase until 2013. Amidst an economic recession where many small businesses fail to make any profits, a final decision on a healthcare reform with a component aimed at small businesses will be difficult to make.

To read the full CNN story, click here.

To read more about Gruber’s analysis, click here
To read more small business opinions on the proposed health care reform, click here.

Health and wellness benefits (like gym memberships or low-cost access to weight loss programs) are more than a way for employers to keep their employees happy, they can also help to reduce costs in the long run.  Healthy employees take fewer sick days, which in turn increases efficiency.  Also, health and wellness are two of many factors that lead to satisfied and therefore motivated employees that are less likely to seek out new employment, ultimately reducing retraining costs.  Here is a useful online tool to calculate the ROI for Health Care Costs, since these returns are often more ambiguous than with other investments.

Non-profits, small business owners, and local hospitals in locales such as Galveston, Tex.,  Duluth, Minn. and Pueblo, Col. have begun collaborating to offer medical services at reduced rates with “3-share” plans.  Read the full article in the Wall Street Journal.

The Chamber of Commerce, in conjunction with Piedmont Health, has created a pilot program to offer health care to its members at a discounted rate. Members who take advantage of this trial program will be able to visit any of Piedmont Health’s facilities and receive a doctor’s care and prescription medication for a significant discount. To read more about this program, click here.