Critical to the Business Plan and ultimate employee attainment and sustained mor

Question

Critical to the Business Plan and ultimate employee attainment and sustained morale, it is necessary to understand and, if required, institute health care options. US Census Bureau data recently indicated that over 45 million Americans, 15% of the population, are uninsured. This does not include "underinsured" workers and dependents. Much of this increase resulted from loss of millions of jobs, and falling household income. Recent data also indicated that costs of insured plans will continue to rise, much of which will have to be borne by employees. In light of the now Supreme Court affirmed Patient Protection and Affordable Care Act health care legislation ("Obamacare"), discuss how this program will impact, both generally and for your proposed or ongoing small business and new venture development.

Explanation / Answer

The Patient Protection and Affordable Care Act or “Obamacare” is a new legislation that intends to improve the current American healthcare system, by offering good quality and affordable healthcare insurances, and by restraining the increasing healthcare spending in the country, by the means of rules and regulations on insurance companies, new tax structures, government funding, better benefits, better education in the sector, job creation, etc.

Small and new businesses earlier failed to provide the health care specifically healthcare insurances to their employees due to high costs, or if they did provide, they intended to shift the costs to the employees to maintain their profitability. Now with more reasonable insurance benefit, small businesses can actually afford to provide healthcare for its employees. Obamacare also allows collective buying of healthcare insurances making the sector competitive, helping the insurance buyers to actually compare the available plans and options, and also get assistance for the costs.

These acts also helps small businesses by enabling them to chose and purchase their healthcare insurance coverage, and by giving them tax credits (upto 50% of the total insurance expenditure) for the same to encourage them to include health care insurance in the benefits programs.

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