Has your business ever stopped to think about how it will be affected by the new healthcare reform? Several things will have to change in the business you run and you will not necessarily have a say in it.
Read on to learn the different aspects in your business that could be affected when the new reform hits.
You may hear this healthcare reform referred to as Obamacare. It's also known as the Patient Protection and Affordable Care Act. Why does this healthcare reform shatter the hope of so many small businesses? According to a "fact sheet" post written by DoughRoller.net "Companies with more than 50 employees would be required to pay a fee of $2,000 per worker if the company does not provide coverage, and any of that company's workers receives federal health care subsidies. The first 30 workers would be subtracted from the payment calculation."
How does the healthcare reform affect small businesses?
Of course, it affects small businesses the most because the smaller businesses fork out more money for premiums compared to larger businesses. Many small businesses do not currently have to offer their employees any type of healthcare coverage. In return, a lot of these employees are uninsured or rely on spouses for some sort of insurance. According to Business Week only 19 percent of employees who work for small businesses get insurance through their companies.
In essence, the small businesses will not be able to afford to provide the kind of healthcare necessary to their employees. If the small businesses do not provide the insurance to their employees, then they face large fines. These types of fees and fines can put businesses on the street quickly.
How does the healthcare reform affect large businesses?
Many large businesses will be affected because the healthcare reform requires that a business supply so much more in terms of healthcare coverage benefits. This also means increased reporting. According to hrhorizons.nacubo.org large employers are subject to the following reporting requirements:
- Details about the employer (name of business, employer identification number).
- Whether full-time employees are offered coverage through an employer-sponsored plan.
- Details regarding the employer-sponsored plan (waiting period, availability, premium costs, employer's share of costs of benefits).
- Number of full-time employees for each month during the year.
- The name, address, and tax identification number of each full-time employee during the year and the months during which he or she was covered under the employer-sponsored health-benefit plan.
There are also a lot of administrative changes that will need to occur once this healthcare reform is put into place. (Another reason many small businesses will not be able to afford the healthcare reform.) Large and small businesses can be subject to large taxes and fees if they are not complying to all new laws associated with the healthcare reform.
In 2013, businesses will be expected to limit FSA salary deferral contributions, increase the itemized medical expense deduction threshold, and even eliminate certain tax deductions. That's only for 2013, so imagine what is in store for businesses in 2014.
According to an article that Forbes wrote on the healthcare reform "the Affordable Care Act has warts, but the majority of the law contains good provisions that will eventually make our country stronger and healthier. Learn what is good in the law, learn about the warts, and demand that our leaders move forward with further solutions."
Is this new law perfect? No. Each business has to decide the good and the bad of the healthcare reform and find a way to deal with it. While every business has their opinion on the reform, it does not look like it will be going away anytime soon. Every political type (liberal and conservative women and men) will have to deal with the healthcare reform in one way or another.
Written by Ann-Marie Murrell, a go-to conservative reporter in Los Angeles.