On October 1, U.S. House Committee on Small Business Chairman Sam Graves (R-MO) released the following statement about the ongoing problems of the Small Business Health Options Program (SHOP), one year into Obamacare's operations.

"From the time then-Speaker Pelosi proclaimed Obamacare should be passed 'so you can find out what's in it' to today's one year anniversary of this burdensome law's botched implementation, the administration has widely over-promised and painfully under-delivered every step of the way," said Rep. Graves. "The past year has been littered with problems, including rising costs, cancellation notices, and a faulty $2 billion website." Likewise, he continued, Obamacare's Small Business Health Options Program has fallen woefully short of any kind of acceptable standard.

"To this day, the administration is unable to answer basic questions, such as how many are enrolled in the program—the question this Committee has asked repeatedly since January," said Rep. Graves. "Instead of simplifying the health insurance process for small business, the SHOP program has created confusion and uncertainty with five delays along the way. Small businesses have paid the price of this inept management."

During the September 18 hearing of the Small Business Subcommittee on Health and Technology, titled, "An Update on the Small Business Health Options Program: Is It Working for Small Businesses?" Chairman Chris Collins (R-NY) opened the hearing by stating: "The SHOPs are marketplaces established by President Obama's health care law and are intended to assist certain small businesses in shopping for, comparing, and enrolling in health insurance plans for their employees."

He continued: "The Administration has promised that the SHOP exchanges would simplify the process of obtaining insurance, expand health insurance coverage options for small businesses, increase small business purchasing power to lower costs, and put consumers in charge of their health care."

Unfortunately, according to Rep. Collins, the reality of the program is far less than promised. "Despite spending vast amounts of time and taxpayer dollars establishing the SHOPs, the program continues to be beset by operational delays and other problems that have undermined their utility as a tool for small businesses."

During the hearing, Rep. Collins specifically asked the Centers for Medicare and Medicaid Services (CMS) witness, Director of the State Exchange Group, Mayra Alvarez, about the SHOPs enrollment data. However, according to Rep. Graves, the administration was still unable to provide the information.

Rep. Graves added that the SHOPs challenges have occurred while small businesses in general are grappling with rising health insurance costs. In fact, he said, costs are increasing for nearly two-thirds of small businesses that provide health insurance to their employees.

The National Federation of Independent Business found that 54 percent of small business owners paid more per employee for health insurance in 2013 than in 2012.

Instant Insights /

U.S. house committee on small business

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