Business Leaders Applaud Health Care Ruling; Concerned About Medicaid Limitations

For Immediate Release: 
June 28, 2012

Washington, DC, June 28, 2012 – Business leaders across the United States applauded the Supreme Court’s support for the Affordable Care Act (ACA), according to American Sustainable Business Council (ASBC), a national network of business groups. "The Court’s ruling means that businesses will continue to enjoy important provisions which have already reduced their health insurance costs, and enabled them to cover more of their employees. This will help businesses to expand and step up their hiring," said David Levine, ASBC’s CEO.

“Today marks an extraordinary day for American businesses, which will continue to benefit from health care tax credits and reduced insurance costs,” said Frank Knapp, Jr., Vice Chair of ASBC and head of the South Carolina Small Business Chamber. “Not only does the ACA help small businesses to be more profitable, but it can level the playing field with big businesses that pay lower rates simply because of their size.”

However, one element in the Court’s opinion could hurt small businesses. The Court said that states need not expand Medicaid to 133 percent of the federal poverty level, as required under the ACA. “Small businesses would benefit from the expansion since it would reduce the number of employees needing to be covered by a company’s healthcare plan,” says Knapp. “That is the next fight in each state.”

With rising healthcare costs putting extreme pressure on businesses, healthcare reform that saves money is necessary for economic recovery and growth. The new law has already delivered tax credits to hundreds of thousands of businesses. Businesses will also receive rebates from insurance companies that miss certain spending targets. Measures taking effect in 2014 will create more competition among insurance companies, which will drive prices lower. When the ACA is fully implemented, small businesses will no longer pay more than large corporations for their insurance.

Recent polling shows that most small business owners support the Affordable Care Act, with strong majorities favoring key provisions that affect small businesses.

"With the Court’s decision, companies like ours across the country will be able to save money on healthcare costs, allowing us to invest that money in growth that will create jobs,” said Bram Kleppner, CEO of Danforth Pewter, which manufactures in Vermont and has stores in Vermont and Virginia. “Our employees will never again have to worry about losing their insurance if they lose their jobs. In our small company, we’ll be able to spend less time on health insurance administration, and more time making and selling pewter.”


The American Sustainable Business Council and its member organizations represent more than 150,000 businesses nationwide, and more than 300,000 entrepreneurs, executives, managers, and investors. The council includes chambers of commerce, trade associations, and groups representing small business, investors, microenterprise, social enterprise, green and sustainable business, local living economy, and women and minority business leaders. ASBC informs and engages policy makers and the public about the need and opportunities for building a vibrant and sustainable economy.

Editor note: Poll data referred to may be found here:


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