Obama: Reform would help small businesses

WASHINGTON, July 25 (UPI) -- Healthcare reform will strengthen small businesses by lowering insurance costs, enabling them to cover more workers, U.S. President Barack Obama said Saturday.

In his weekly address, Obama said small businesses pay up to 18 percent more for health insurance than large companies, in part because they lack the bargaining power of big business and pay higher per-employee administrative costs. The higher tab, coupled with steadily increasing costs some small businesses face, force many of them to cut benefits, offer no insurance, lay off workers or close, he said.

"This is unsustainable, it's unacceptable and it's going to change when I sign health insurance reform into law," Obama said.

Healthcare reform plans under consideration in Congress would enable small businesses to buy health insurance through an "insurance exchange" that would include a public insurance option, with lower-cost options than now available, the president said. Also, businesses would get tax credits on insurance costs.

Obama said he had recently heard from a small business owner in New Jersey who has eight employees and provides health insurance for each. But the rates have climbed 20 percent a year, to $1,400 per family per month, Obama said, and the businessman may be forced to eliminate health insurance.

"Day after day, I hear from people just like him … small business owners trying to make a living and do right by the people they employ," Obama said. "Right now, they are getting crushed by skyrocketing healthcare costs."