Hi, I’m writing regarding to your employer mandate page.

The paragraph “The Truth About Who The Employer Mandate Affects” states, in part, “…5.8 million out of 6 million total firms have under 50 employees… That means less than .2% of small businesses (10,000 out of 6 million)”.

I don’t understand how this math works out. The difference between 5.8 and 6 million is 200,000 – not 10,000.


Answer

5.8 million of 6 million firms have over 50 employees. Only 0.2% of small business who have over 50 don't already provide coverage (or about 10 thousand firms). So 200,000 have over 50, but only 10,000 had to step up to comply with the employer mandate. That 10,000 is .2%(ish) of the total 6 million of all small businesses. The figure was from a whitehouse.gov fact sheet, the numbers are all rounded but .2% is pretty accurate.  This census data backs up that there are about 5.8 million corporations in 2008 so it stands to reason the number grew a bit. It's not our favorite fact numbers-wise, but the bottom line and point behind it is pretty strong. That point being that most firms who have to comply with the mandate already offered coverage and the mandate doesn't affect the majority of firms. However, the tax credits for small employer affects many employers (more businesses with under 25 employees than over 50). On the flip side, the largest businesses employee a little less than half the work force while smaller businesses employee the rest. So the implications of a larger business offering coverage is substantial. Hope this clears it up.

We updated and cited the employer mandate page to avoid further confusion.

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