New federal regulations that look to combine the individual and small group health insurance markets nationally could adversely affect small businesses, local business leaders said yesterday.

The Affordable Care Act regulations may lower premiums for individuals, but raise them for small groups — primarily small businesses — by restricting the number of rating factors that health insurers may use in setting premiums, said Peter Forman, president of the South Shore Chamber of Commerce.

“It will make small businesses second-class citizens by raising premiums,” said Jon Hurst, who heads the Retailers Association of Massachusetts.

“It’s an ironic and tragic step, considering Massachusetts was the model for the Affordable Care Act.”

In a statement yesterday, state Undersecretary of Consumer Affairs Barbara Anthony said she is reviewing the rule and working with the U.S. Department of Health and Human Services “to determine whether there will be any adverse effects in Massachusetts and whether they can be mitigated.”

The regulations will restrict premium rating factors to whether a plan is for an individual or a family, where a person lives, how old the person is, and whether the person smokes, Forman said.

The regulation will eliminate other existing factors available in Massachusetts for premium rating, such as industry rating, group size, participation rate and wellness cooperatives, he said.