When Barack Obama shoved his Affordable Health Care Act down America’s throats, he promised that there would be incentives and tax credits available for small businesses to make health care more affordable. However, that appears to be another promise of Obamacare that is broken.
According to the latest figures, only 170,300 businesses out of more than 4 million that qualify for the small business tax credit have taken advantage of it. That means that only a mere 4.25% of eligible businesses have used the tax credit.
The government set out to discover why so few small businesses have applied for and received the tax credit. They found out that the procedure to file for the tax credit is long and cumbersome and many businesses figured it wasn’t worth the effort.
According to the Government Accountability Office, the businesses that are supposed to benefit the most by the tax credit are the smaller businesses that pay the lowest wages. However, 80% of these businesses don’t offer health benefits and the tax credit is not big enough to entice them to offer the coverage.
Additionally, only 30% of small businesses with 10 or fewer employees offer health insurance benefits. Those that do, pay higher premium costs than larger companies. The tax credit was supposed to help offset those higher costs, but the process takes so much time and effort that the vast majority of them won’t even bother to apply.
The newly discovered broken piece of Obamacare places the administration in a rather difficult predicament. In order to fix the problem they have to turn to Congress for help. With Obamacare in the hands of the Supreme Court who may throw out parts or the whole package, no one in Congress seems willing to do anything to fix the problem.
Additionally, the consensus of the GOP controlled House is to wait and see what the Supreme Court will do and then decide if they will try to fix the small business tax credit or work to repeal Obamacare and start all over with a more workable and affordable healthcare program.