Most everybody is wondering how the new healthcare law is going to affect individuals and businesses. This article is going to list some benefits of the law and what businesses are overall concerned about.
Benefits of New Healthcare Laws
The key part of the new healthcare law is that it is going to establish a health insurance marketplace. Beginning on October 1, 2013, individuals will be allowed to shop for insurance in every state and compare their options via the marketplace. This allows the consumer to shop for better deals and overall they will save money over the long term.
In addition, the new healthcare law is also going to increase access to Medicaid. This allows the poorest of Americans to gain access to health insurance that they otherwise wouldn’t have. Also, beginning in January 2014 states will be given the option to expand overall Medicaid coverage to people who are below 133 percent of the federal poverty level. In the first three years of the program, states will receive full federal funding to support the program.
Lastly, the new healthcare law is going to provide seniors with more affordable prescription drug choices. Overall, people in 2012 have already received up to a 50 percent discount on brand-name drugs and an overall 14 percent discount on generic drugs. Over time this adds up to substantial savings.
What Do Businesses Think of Healthcare Law?
Businesses overall want economic certainty and they want to know what rules they need to know so they can execute decisions properly. Thus the new healthcare laws on the horizon are putting some businesses on edge since they don’t know the overall ramifications and total cost that the new law is going to cause.
In 2010, the National Federation of Independent Business spent around 1.2 billion to fight the healthcare law. Their argument is based on the theory that the new health care law will burden businesses by exposing them to unnecessary costs, and it will leave various businesses with insufficient cash flow. For businesses to provide health care for their employees is a huge barrier that many small businesses cannot afford. Over 40 percent of small businesses spend more than 10 percent of their income on health care costs.
Fortunately, the federal government did put policies in place that ease the burden a bit for businesses. First off, starting almost immediately businesses that have less than 25 employees are eligible to receive tax credits up to 35 percent. Starting on January 1, 2014, these tax credits are going to increase up to 50 percent and they’re going to available for two years straight.
In addition, now insurance companies are required by federal law to spend at least 80 cents of every dollar for medical costs and not administrative costs. This part of the law is already saving businesses a significant amount of money every year.
How businesses are impacted by the law varies greatly since every business is a different size. Businesses should remain vigilant on what new regulations come about and they should plan accordingly.