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  • John Arensmeyer

  • Beth Sirull

Opinion
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Viewpoints: Reform is working for small businesses

Published: Friday, Apr. 1, 2011 - 12:00 am | Page 13A

One year after Congress passed one of the most sweeping health care reform bills in history, most small-business owners still don't know what's in it for them. And that's unfortunate, because when they learn more, they're optimistic about the opportunities.

The heated political battles following the passage of the law have buried critical facts amid the rubble – facts that can help small-business owners now. We represent two business support organizations that seek solutions to the challenges facing small business. And we want to let people know there's a lot in the Patient Protection and Affordable Care Act that will help California entrepreneurs thrive while providing health coverage to their valued workers.

Take, for instance, Linda Derivi, owner of Derivi Construction and Architecture in Stockton, specializing in building and landscape architecture, interior design and LEED consulting and certification. After health care reform passed, she educated herself about the law. Her health care costs keep rising, but she's hopeful that the insurance exchange – an insurance purchasing pool – will help her find more competitive prices. In addition to insurance exchanges, many small businesses are benefiting from tax credits.

Four million small businesses are eligible right now for the tax credits, which will put money back into their cash registers. Unfortunately, the political theater surrounding the act is overshadowing this benefit. In a survey of California small-business owners released this week, we found 57 percent don't know the credits exist. That's a shame because once they do, many who don't offer insurance said they'd be more likely to do so.

But tax credits are not the end of the story. The health reform law is stocked with provisions aimed at reducing costs for small business and ensuring access to quality, affordable insurance. By 2014, states will create health insurance marketplaces where small businesses can pool their buying power and drive down costs. That has Kevin Goss, owner of Village Drug Co., which employs 13 people in far Northern California, excited. He hopes the exchanges will allow him to afford insurance and offer it to the employees of his pharmacy for the first time.

Other provisions mean insurance companies will no longer be able to refuse coverage because of pre-existing conditions – a reality that stifles entrepreneurship because many creative and hardworking people are scared to start a business without coverage.

As we mark the first anniversary of the law, it's important to remember who it was enacted to help: folks like Linda Derivi and Kevin Goss, their workers and the 28 million other small-business owners who need relief from soaring health care costs. The law gives small businesses purchasing power to make health coverage more affordable and accessible – allowing them to compete on a level playing field with bigger companies. And most importantly, the law helps employers who want to offer benefits but can't because of extreme costs and outrageous insurance practices.

Opponents of the law want to reignite the debate we've had for two years over the Affordable Care Act, but we don't see the point. The act is working for small business. It's time to move forward. It's time to let Derivi and Goss focus on the health of their business rather than worry about a sickly bottom line. It's time to let states begin creating insurance marketplaces that will lower the cost of health care. And it's time to let the spirit of American entrepreneurship flourish and drive our economy to new heights.

John Arensmeyer, top, is the founder and CEO of Small Business Majority. Beth Sirull is executive director of Pacific Community Ventures.

© Copyright The Sacramento Bee. All rights reserved.


John Arensmeyer is the founder and CEO of Small Business Majority. Beth Sirull is executive director of Pacific Community Ventures.



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