The Obama Care Act mirrors the complex nature of the new health law. It contains numerous benefits particularly for middle and low businesses. On the other hand, it contains obstacles for larger firms and high income earners that do not insure their staff and various healthcare sectors. The Obama care act is therefore both beneficial and disadvantageous to various businesses and organization in America.
Many big businesses claim that the act will have numerous flaws which will introduce more bureaucracy instead of purging it. Many predict disaster with its enactment claiming that an administrative train wreck will result and businesses will face a rude shock. There definitely will be problems since reforms will be initiated to get extra coins from businesses. It is profoundly a conservative act with no political sense aimed at decrementing business in disguise. Generally, most business people in American view it as a complicated program that fails to consider political feasibility thereby creating a lot of confusion in administration management. Many businesses are not willing to pay for coverage even with the subsidies. For instance businesses with fewer than twenty five employees will not get any tax breaks up to about forty five percent for their employees’ health insurance costs (Skocpol 6).
Since many Americans work for large companies, some of these employees could have to incur costs from insuring their individual workforces. As a single player and national player, healthcare systems regarding the Obama Care Act is generally better for the public put to great extent, it will put insurance companies out of the deal ‘the business’. In addition to that, it will also dent financial accounts greatly. Arguably, this act actually has got to do with all businesses and how to guarantee health insurance survival such as maintaining total profitability of the healthcare industry. Above everything else, businesses want full certainty which will be interfered with by the act. This assurance will by far be limited once the act is enacted because the landscape will pretty much become less uncertain once the authority issues a ratification of the Act. Therefore, business will suffer loss directly and directly as they will have to incur costs accrued to it (Kalis 11).
Seemingly, it is presumed that this Act will be very beneficial to small and medium size businesses. Without Obama care, these small businesses will be thrown back into unstable markets and lose existing benefits. Arguably complying with the regulations of the government will be the greatest legal concern businesses will face. It will be a huge barrier for businesses to provide healthcare. Businesses will be required to spend 40% which is on the higher side and more than 10% of their health care payroll.
There are between 1.4 and 4 million businesses with less than 20 employees who are eligible for tax credits. Businesses will therefore be required to spend at least 80 cents on Medicare on every dollar. This is a move that infringes the rights of businesses in America. In relation to that, large firms will cut back workers hours to part-time. In addition to that, this act adds businesses more responsibility both financially and economically. Businesses will be penalised for failing to cover their full-time workers which is presumed to amount to $2000 per employee (Kaplan 5). These penalties will offset the cost of employees who will use emergency or exchange room services.
The Obama Care Act will therefore hurt and benefit businesses with equal measures. Large businesses will greatly benefit from the Act while small businesses will suffer the possible consequences.
Skocpol, Theda. "The political challenges that may undermine health reform." Health Affairs 29.7 (2010): 1288-1292.
Kalis, Peter J., and Judy Hlafcsak. "Healthcare Reform: Let's Act Locally." Duq. L. Rev. 50 (2012): 253.
Kaplan, Richard L. "Analyzing the impact of the new health care reform legislation on older Americans." Elder LJ 18 (2010): 213.