The Affordable Care Act has contradicting rules regarding business regulation, and it’s negatively affecting business owners. On January 1st, 2016, Obamacare had changed its rules and enforced insurance challenges on business owners and employees. Stressful situations resulted due to a mandate to change business insurance plans, which confused many owners, and eventually affected the employees. A lack of communication between employers and employees have occurred due to a misinterpretation of assurance statue. This miscommunication put a damper on a practical and constructive work environment, which lead to further issues and harmed the flow of productivity. Insurance coverage, for example, is an important coverage that employees could have. If coverage is restricted due to expensive fees and unregulated changes then employees would not be able to afford the alteration.
According to the USC Annenberg School of Communication and Journalism the Affordable Care Act has many different definitions of small businesses, and they are inconsistent with one another. This is a big issue for those in the work force. Currently, the Obamacare-related changes will define small businesses as those with up to 100 full-time employees, 50 more than the previous number. By being classified as a small business, rather than a large business, employers must offer health insurance that complies with a different set of Obamacare rules. As a result, most of these employers will need to buy new insurance plans. Under the new rules, insurance plans contain standard designs such as bronze, silver, gold, and platinum coverage tiers. Employers are also required to limit how much more insurers charge older workers than younger ones. If businesses have an older, sicker workforce, premiums will decrease. Conversely, if businesses have a younger, healthier workforce, premiums will increase.
Furthermore, Obamacare requires big businesses to provide affordable health coverage to their employees or they will face financial penalties. Yikes!
According to the New York Times, Paul Krugman commented on the the Obama administration and its health reform with an interesting twist:
“The details have been something of a surprise: fewer people than expected signing up on the exchanges, but fewer employers than expected dropping coverage, and more people signing up for Medicaid — which means, incidentally, that Obamacare is looking much more like a single-payer system than anyone seems to realize. But the point is that reform has indeed delivered the big improvements in coverage it promised, and has done so at lower cost than expected.”
– Paul Krugman
Essentially, Obamacare is providing coverage to businesses who are complaining about its changes. Perhaps it is a blessing in disguise, especially due to the low drop rates.
Thanks for reading. ~Angelina