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Health Care Reform:

Health Insurance & Affordable Care Act

Supreme Court Upholds Health Reform Law

What does this ruling mean for small businesses? continued...

Many critics of the Affordable Care Act say that the requirement that most employers provide insurance coverage will hurt small businesses. However, Princeton health care economist Uwe Reinhardt says the Supreme Court decision will have the opposite effect.

"Some small businesses will probably dump their employees into the [state insurance exchanges] and we economists have always argued that they should. It is highly inefficient for small business firms … to go shop around for health insurance paying broker commissions of 10% if they can have access to the same insurance exchanges that General Motors operates," he says.

"This is very helpful for entrepreneurship, because it allows young entrepreneurs to start a business without worrying about an employee getting sick. I think this is a boon for small business."

Brenda Goodman, Jeff Levine, and Sonam Vashi contributed to the reporting of this story.

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