What businesses need to know about ObamaCare

The Affordable Care Act, also known as ObamaCare, has been the bane of businesses in the US. Many have fought against it and failed. And since it will fundamentally impact many US businesses, understanding it should be the number one priority for most entrepreneurs and businessmen.

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What is ObamaCare?

ObamaCare is a national health plan that aims to reform the US healthcare system. It focuses on providing Americans with affordable healthcare while regulating the health insurance industry, in order to reduce the country’s burgeoning healthcare costs.

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How will it affect businesses?

Businesses with more than 50 employees working have to provide their employees with healthcare insurance. Failure to do so would require them to pay around $2000 dollars per uninsured employee (after the first thirty employees). So, for a company that does not provide healthcare to its 100 employees, the penalty would be around $140,000. Companies that provide their employees with healthcare insurance that exceeds 9.5 percent of their employees’ household income and/or insurance with inadequate coverage will be penalized as well (around $3000 dollars per insured employee).

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However ObamaCare may seem to be a step into the right direction for the government, it is very important that businesses make sure that these additional tax and penalty burdens don’t cut into their bottom lines.

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