Business Owners' Affordable Care Reaction Is Mixed
NEW YORK, July 10, 2015 /PRNewswire/ -- Newtek Business Services Corp., (NASDAQ: NEWT) (www.thesba.com) The Small Business Authority®, with a portfolio of over 100,000 business accounts, announced today the findings of its SB Authority Market Sentiment Survey, a monthly window into the concerns of independent business owners. Based on a poll of over 1,300 respondents, the key finding from the June survey is 47% of business owners say they and their employees have not received improved and more affordable care under the Affordable Care Act. However, 53% of business owners say now that the Affordable Care Act has been implemented, they are satisfied with their current healthcare solution. Both figures are very slightly improved from the results found a year prior.
The full June 2015 results showed the following:
| Poll Question |
Poll Answer |
Percentage |
2014 Percentage |
| Have you and your company |
Yes |
27% |
19% |
| No |
47% |
50% |
|
| Unsure |
26% |
31% |
|
| Now that the Affordable Care |
Yes |
53% |
45% |
| No |
28% |
34% |
|
| Unsure |
19% |
21% |
Barry Sloane, Chairman, President and CEO of The Small Business Authority® commented, "Our recent poll surveying independent business owners clearly shows that when it comes to health insurance cost, coverage, utilization and claims – timing is everything. Our survey shows that 53% of independent business owners were satisfied with their current healthcare solution, while 28% were unsatisfied. However, when business owners were asked whether they are receiving improved and more affordable care under the Affordable Care Act, only 27% said yes.
Insurance coverage and the non-sequential care provided typically occurs in the future when the insured seeks a doctor, receives care and prospectively files a claim and realizes whether or not there is a significant deductible. Clearly there is a huge positive bias to any respondent who has been asked the question on whether or not the Affordable Care Act has been helpful; under any of the following circumstances one would one get overwhelmingly positive responses:
- A person with a pre-existing condition
- A person who received government subsidies and can receive Medicaid
- An unemployed person who previously could not afford buying a personal policy
- Or a business owner who has yet to see any real change in coverage or claims paying capability as the Affordable Care Act is fairly new
The above categories of people overwhelmingly have received additional benefits. Those purchasing health insurance, typically in the private sector and small business owners, have yet to experience the potentially negative consequences of a future Affordable Care Act event with respect to high deductibles, lack of physician choice, waiting time to get to a doctor or payment cap on coverage. It will be interesting and important to track the satisfaction over time as the Affordable Care Act becomes a living reality."
About Newtek Business Services Corp.
Newtek Business Services Corp., The Small Business Authority®, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business services and financial products under the Newtek® brand to the small- and medium-sized business ("SMB") market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to over 100,000 SMB accounts across all 50 States to help them grow their sales, control their expenses and reduce their risk.
Newtek's products and services include: Business Lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), eCommerce, Accounts Receivable Financing, The Secure Gateway, The Newtek Advantage™, Insurance Services, Web Services, Data Backup, Storage and Retrieval and Payroll.
The Small Business Authority® is a registered trade mark of Newtek Business Services Corp., and neither are a part of or endorsed by the U.S. Small Business Administration.
Note Regarding Forward Looking Statements
Statements in this press release including statements regarding Newtek's beliefs, expectations, intentions or strategies for the future may be "forward-looking statements." All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek's actual results to differ from management's current expectations, are contained in Newtek's filings with the Securities and Exchange Commission and available through www.sec.gov
For more information, please visit the following websites:
www.thesba.com
FROM:
Newtek Business Services Corp.
http://www.thesba.com
Contact: Simrita Singh
Telephone: (212) 356-9566 / ssingh@thesba.com
Investor Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / [email protected]
Contacts:
Newtek Business Services Corp.
Barry Sloane
Chairman and CEO
212-356-9500
[email protected]
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SOURCE Newtek Business Services Corp.
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