Committee Examines Effects of Obamacare's Business Aggregation Rules

Press Release

The House Small Business Committee today examined the health care law's application of the business aggregation rules and the concerns they raise for small businesses.
The health care law requires businesses that employ 50 or more full-time or full-time equivalent employees to offer health insurance to their full-time employees. One critical issue is the definition of "employee," while an equally important issue is determining which employees are attributed to the business. The answer may be simple for one business with a single owner. However, when an individual shares ownership of multiple entities or with multiple owners, some of them family members, the answer is less clear.

Under the presiding chairmanship of Rep. Chris Collins (R-NY), Chairman of the Subcommittee on Health and Technology, the Small Business Committee heard the testimony of concerned small business owners, examined the administration's process of determining whether businesses are considered single or multiple entities under the health care law, and heard suggestions on what changes to the rules could be considered to reduce confusion.

"Small businesses need to know exactly what they have to do to comply with the health care law, and what it is going to cost," said Chairman Collins. "Even at this late date, too many small businesses still do not have those facts. In particular, the business aggregation rules cause uncertainty among small businesses. The rules can be complicated and confusing, and small businesses need better answers and they need them quickly."

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