Health Care Ruling: What It Means For Business

Businesses have been waiting anxiously on the Supreme Court's decision on the Affordable Care Act. What are the costs and benefits of the ruling?

Large businesses generally provide health insurance for most of their workforce already. These will see little change as a result of the high court’s decision. The big changes will come for self-employed individuals, small businesses, and businesses that employ mostly low-income workers.

Vivian Ho is a health economist at Rice University’s Baker Institute.

“There will be subsidies for small businesses to help them purchase health insurance for their workers. So even though there will be an increase in costs for small businesses, they will not be required to bear the entire burden on their own.”

Ho says small businesses will benefit from the provision of the law letting them pool their buying power through state-level health insurance exchanges.

“Texas is required to develop its own health insurance exchange, and up until now, the Governor has held off doing that because they felt that there was a good chance that the individual mandate and the entire Affordable Care Act would be overturned. And so we’re now actually behind many other states.”

The health insurance mandate will officially take effect in 2014.


Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

More Information