Obamacare and Small Business

Topics: Health insurance, Small business, Health care Pages: 6 (1867 words) Published: December 3, 2013


Obamacare & Small Business
BUS 207 01
November 25, 2013
Melissa Spinden

Many people have a lot of questions when it comes to the new healthcare reform law. First off Obamacare is formally called the Patient Protection and Affordable Care Act. The Patient Protection and Affordable Care Act is the healthcare reform law that was signed in 2010 and now many states have opened their health insurance marketplace exchanges as of October 1, 2013.

This new healthcare reform law aims to increase the number of Americans that are covered by health insurance and also to decrease the cost of health care. Under this new law everyone in America will have to get health insurance of some form. Insurance companies can no longer deny people coverage because of a preexisting condition nor can than charge a higher premium if one has a pre-existing condition (Hamblin, 2013). Obamacare will also allow for young adults to remain on their parent’s policy until the age of 26. This will allow for many young adults to remain insured while they try to obtain a job that will provide adequate health coverage. Throughout this paper I will discuss the new health care reform law and how it affects small business.

The Patient Protection and Affordable Care Act was signed in 2010 but it does not feel as if much has changed, that is because the law will roll out changes in a ten year span. In 2014 a mandate will require all individuals to have “minimal essential health insurance coverage” (Hamblin, 2013). This has upset many people because many cannot simply afford healthcare due to the economy that we are currently in. Individuals may purchase health care coverage through federal or state exchanges that are being set up. To help people obtain health insurance those with moderate to low income are eligible to receive tax credits to help pay for the new health insurance. Many states are also expanding their state Medicaid programs. A chart that demonstrates each states decision on whether to move forward with the health insurance exchanges is provided below.

The Pros of the Patient Protection and Affordable Care Act include that individual health care premiums will be reduced and the more than 33 to 44 million people who are uninsured or underinsured will gain coverage through the new state exchanges, Medicare or the newly expanded Medicaid in some states. For those who cannot afford to pay the health insurance premium could be eligible to use federal tax credits and subsidies to help save up to 60% of the current cost of health insurance premiums. This will make health insurance coverage affordable for up to 23 million Americans (Obamacare, 2013).

Under the new health care reform law over 47 million women will have access to women’s services with no out of pocket costs for preventative and wellness services (Obamacare, 2013). The low-income individuals will have the opportunity of getting health insurance coverage through the state exchange, Medicare, or Medicaid; however some states have opted out of the Medicaid expansion in which some low-income individuals will not be eligible. Seniors and other individuals eligible for Medicare will see expanding benefits and coverage options; however there will be decreases in home health payments and hospital coverage as well. Obamacare will require businesses with over 50 full-time employees to provide affordable health insurance coverage to its employees however small businesses with 25 employees or less will receive federal tax credits to help offset the costs that a small business will face to encourage these businesses to provide health coverage to its employees (Obamacare, 2013).

Under the Patient Protection and Affordable Care Act businesses that have 50 or more full-time employees who work at least 30 hours per week, must provide its’ employees with healthcare coverage or they will face a penalty of $2,000 per employee. This will not...
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