WASHINGTON (June 29, 2016) — A member of the National Federation of Independent Business testified June 28 before a Senate committee on the difficulties he has faced purchasing health insurance since passage of the Affordable Care Act.
“It is difficult to keep up with the constant implementation changes, which can be disruptive to our business,” said Warren Hudak, owner of Harrisburg, Pa.-based Hudak & Co., before the Senate Health, Education, Labor and Pensions (HELP) Committee.
“These changes are sometimes meant to help, but occur too late to provide substantial relief,” Mr. Hudak said. “I feel like small businesses have been placed in an impossible situation as costs increase and competition and flexibility decrease.”
Hudak and Co. had three successive group health plans canceled before deciding to offer a health reimbursement arrangement (HRA) to help their employees pay their own health insurance premiums, the NFIB said. However, last year the Internal Revenue Service started assessing heavy fines against employers who used HRAs, it said.