BUSINESS ANALYTICS & ECONOMETRICS
The Affordable Healthcare Act otherwise known as the Obamacare act holds great significance for the United States. This act is yet a highly confusing arrangement as there are many unclear details which even include the timeline for its implementation (Wendler, 2013). It has clear implications for individuals and small businesses in particular; all individuals that qualify would have to comply with the minimum Insurance coverage requirements or else face the penalties of the Affordable Healthcare Act (Cutler, 2013). With this provision, the workload of the care providers would be impacted that would In turn influence the ability of those receiving care. The small business employers would qualify for the tax credits that would raise the incentive for the employers to ensure the provision of insurance for their employees.
The employers from large businesses would be asked to pay the employer shared responsibilities if they fail to comply with the requirement of minimum insurance for their employees. In 2014, the penalties would be implemented in case an employer fails to offer health insurance to its workforce. One of the major implications is that a large employer that fails in fulfilling the requirement would be charged $2,000 penalty for each full time employee (Lorenzon, 2013). The workforce would also gain a lot; on the one hand, they gain the health insurance from their employee; but on the other, the labor also gains freedom to switch their job without the fear of losing their health insurance coverage (Wendler, 2013).
With universal coverage of insurance, the workers would be free and mobile. But this act is not at all completely bad for the businesses; those businesses with few full time workers would not be required to provide healthcare coverage to its employees; rather, the employees become eligible to purchase their own coverage in 2014. And those businesses with more than 50 employees must provide coverage to the employees (Lorenzon, 2013). The major benefit is that with this Act, all the entrepreneurs and small business owners can afford the insurance. And they also become eligible for the cost saving being the owner of a small business. Earlier the small businesses were not being promoted as they lacked the access to healthcare and with this Act, the sector of small businesses would be promoted (Cutler, 2013). Earlier the supply was less of the small businesses but with Obamacare, more businesses would be promoted and even the supply of the labor force would be increased until and unless equilibrium is reached.
References
Cutler, D. M. (2013). The economics of the affordable care act. [online] 7th Aug. Retrieved from: http://economix.blogs.nytimes.com/2013/08/07/the-economics-of-the-affordable-care-act/?_r=0 [Accessed: 14 Jan 2014].
Lorenzon, R. (2013). Is the affordable care act really bad for business?. [online] 22nd Apr. Retrieved from: http://www.forbes.com/sites/theyec/2013/04/22/is-the-affordable-care-act-really-bad-for-business/ [Accessed: 14 Jan 2014].
Wendler, R. (2013). The affordable healthcare act: what to expect in 2014. [online] 22nd July. Retrieved from: http://www.yourhoustonnews.com/cypresscreek/health/the-affordable-health-care-act-what-to-expect-in/article_5f87a708-9c1d-5f6a-a183-2610453afee8.html [Accessed: 14 Jan 2014].
