CARTERVILLE, IL (KFVS) - Between 50 percent and 75 percent of the 14 million customers who buy their insurance individually may get a "cancellation" letter sometime within the next year because of the Affordable Care Act, according to a new report.
Experts say it's because some current health insurance plans don't fall under the affordable care act guidelines.
One business owner said the Affordable Care Act is not only confusing, but is also driving up insurance costs for his employees.
He said his employees don't know what to do because the options are just too expensive.
Ben Calcaterra, the owner of Logan Primary pharmacy said his employees now have three options when it comes to insurance.
"They can take our company insurance, they can get their own insurance or they can pay the penalty," he said.
Calcaterra said while he does offer employees insurance through the pharmacy, they have to pay for it out of pocket.
He said all the options are costly to his minimum wage employees.
"They're kind of stuck between a rock and a hard place," he said.
Calcaterra said rather than making basic health insurance more affordable and accessible for small-business owners like him, the cost of individual and small-group policies is going up.
Under the ACA, most Americans must have health insurance or pay a penalty beginning in January. The one option some of his employees are seriously considering if it means avoiding paying double for a different insurance plan.
"In most cases that we've seen a fine is looking to be cheaper than either of the insurance options," he said.
The law requires businesses with 50 or more employees to offer coverage, something Calcaterra doesn't have to deal with, but still knows the stress his employees face.
"It's just too confusing for employers to understand the full ramifications of this affordable health care act," he said.
The penalty is $2,000 per employee minus your first 30 employees.
This means that a company with 55 employees will pay a penalty of $50,000.
The Obama administration said people who are being dropped from their current insurance plans will benefit in the end.
A senior spokesperson said those canceled plans did not meet the minimum standards under the new law and the new plans will offer better coverage.