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# Small businesses would pay less for health care plans
- URL: https://www.foodconsumer.org/250720090451_small_businesses_would_pay_less_for_health_care_pla/
- Published: 2009-07-25T16:51:00.000Z
- Updated: 2026-09-20T15:48:35.000Z
- Description: A Council of Economic Advisors report says the administration's health plan would give small businesses insurance exchanges, a tax credit and subsidies, and bar screening for pre-existing conditions. Without change, it projects 72 million uninsured by 2040.
- Author: Food Consumer
- Tags: Miscellaneous, Health News, #vivvo-import

By Sheilah Downey ([sheilahd@foodconsumer.org](mailto:sheilahd@foodconsumer.org)) 

Small businesses would benefit from the Obama administration's health care plan with a series of incentives to help lower costs, says a report released today by a White House advisory group.

The reform package would include "insurance exchanges" that would allow small businesses to choose among a variety of plans to provide better coverage at lower costs, states the report from the Council of Economic Advisors.

Small businesses would also receive a tax credit to alleviate higher costs and encourage coverage. Sliding scale subsidies for low-income families would also be offered and health insurers would not be allowed to screen potential enrollees for pre-exisiting conditions.

The CEA also stated that the plan would reduce "job lock," a phenomenon where workers are reluctant to leave their jobs for fear of losing health care coverage.

Proposed reforms would also increase incentives to spur new-business start ups, said the report.

If the current health system isn't changed, the CEA projected that the number of uninsured Americans would rise from 46 million in 2007 to 72 million in 2040.