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What does the repealing of Obamacare mean for my small business?

Posted by on Feb 19, 2017 in Affordable Care Act | 0 comments

The Affordable Care Act (also referred to as “Obamacare”) has drastically impacted the way we perceive and manage health insurance. Whether an individual or a business, health insurance has become an integral part of everyone’s life. Questions that came up when the ACA was passed in 2008 must be answered again. Questions of mandatory coverage, extent of coverage, and cost of coverage are all relevant to small business owners trying to survive in a competitive marketplace. According to Slater Pugh, Ltd. LLP, running a business is a complex undertaking which requires careful planning and management of human resources in order to create a desirable work environment that also protects the interests of the company from potential damage.

The next few months will reveal to the American people the scope of the changes coming to the Affordable Care Act. Many have suggested a “repeal and replace” strategy, electing to completely scrap the current legislation and replace it with new policies. The implications of this strategy are unclear, as there are many replacement possibilities. One such possibility is the end of the mandate that everyone in the US have health insurance. This affects businesses by, in theory, reducing their costs. As a small business owner you would no longer have to cover your employees, saving you money.

In addition to removing the mandate requiring businesses to cover their employees, insurance plans themselves may get cheaper as a result of the repealing of the ACA. Currently, businesses with low risk employees are grouped in with businesses with high risk employees, raising the cost for your small business. If you choose to insure your employees despite the removal of the mandate, you may see your insurance prices decrease as you are given a price more indicative of your employees’ risk level.

None of these changes are set in stone, and the transition away from the Affordable Care Act is likely to be a multi-year process. It is essential to stay informed on legislative proceedings to be prepared when the insurance market changes.

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