The American Health Care Act, approved last week in the House and awaiting action in the Senate, could have an impact on small business owners who want to provide health insurance to their employees. The House version of the healthcare bill removes a prime incentive for entrepreneurs to purchase group insurance under the Affordable Care Act.

As it now stands, the AHCA proposes eliminating the small business tax credit in 2020, which was the ACA’s inducement for entrepreneurs to participate in the Small Business Health Options Program, a health insurance marketplace for companies with fewer than 25 employees. By eliminating the tax advantage, small business owners may bypass purchasing health plans on SHOP altogether and seek coverage from private insurers, or not offer insurance at all, industry experts say.

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