A report published by the Urban Institute examines the cost and coverage implications of H.R. 3962, the House health reform bill passed in November 2009, on large and small employers.

From the summary:

We estimate that the change in employer’s net costs under the House reform bill would be relatively modest—an increase of just 2.9 percent over the current system. Moreover, spending differs by firm size, with higher spending among larger firms and lower spending among smaller firms. The increase in costs for larger firms primarily reflects increased enrollment in existing employer coverage that will occur because of the individual mandate. Among small employers, we estimate that net costs would decrease due to a combination of factors, including employer subsidies, the introduction of health insurance exchanges as a more efficient vehicle for small group coverage, the expansion of Medicaid coverage to some low-income employees, and exemptions from penalties for not offering health insurance coverage. Thus, the House bill would reduce the disadvantages that small firms currently face in providing health insurance to their employees, a key objective of reform.

Full report: Health Care Spending Under Reform: Less Uncompensated Care and Lower Costs to Small Employers (PDF | 283.45 KB)

The Urban Institute. (2010). Health care spending under reform: less uncompensated care and lower costs to small employers. Clemans-Cope, L., Garrett, B., and Buettgens, M.