Small business job creators just received welcomed news from Uncle Sam. The Secretary of Labor, Alexander Acosta, recently proposed a new rule expanding the Employee Retirement Income Security Act (ERISA)–commonly referred to as an expansion of association healthcare plans. Currently, the measure is used to largely allow corporations and unions to gain health coverage without being subject to many of the cost-raising regulations and mandates associated with the Affordable Care Act (ACA). The proposed expansion will lend the same courtesy to small businesses.
The rule is aimed at taming the skyrocketing healthcare costs associated with the ACA—which have notably impacted small businesses who already operate under tight budget constraints. In fact, after many years of the ACA, only 50 percent of small businesses currently offer employee-sponsored health insurance—leaving nearly 11 million small business employees uninsured.
Continuing to unravel the regulations and mandates associated with the not-so-affordable Affordable Care Act will benefit Main Streets and small businesses across the country. This recently proposed rule by the Labor Secretary is yet another step in that direction.