Small Business Finance News
Minority Owned Businesses Stand To Benefit From Obamacare
Written by Jenna Weiner
In 2014, minority small business owners will be one of the many beneficiaries of President Barack Obama's universal healthcare act.
Financial news for entrepreneurs and small businesses rarely speaks positively about health insurance issues. Many businesses lack the funding to provide it, and because smaller companies are considered high risk groups, insurers charge them higher costs, resulting in a lack of care or less generous plans for employees compared to those at larger corporations, according to the Center for American Progress.
Because minorities experience disparate health requirements, the implementation of the Affordable Care Act in March of 2010 - which aims to provide better benefits for those with pre-existing conditions and improve prescription drug coverage - will be an advantage to both minority small business owners and employees.
The Associated Press adds that the health bill will act as a "Travelocity" for health insurance, allowing small businesses to comparison shop for the plan that fits their budget and needs.
CAP notes that between 2002 and 2007, the growth of businesses owned by minorities outpaced the growth of non-minority-owned companies and generate more than $1 trillion annually. Providing low-cost, high-quality healthcare coverage to these companies can increase overall profits, allow them to offer higher wages as well as attract or retain skilled employees.
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