Range of tactics being utilized
For the first time, larger small
businesses will face fines of up to $2,000 per full-time employee for failing
to offer health insurance under the Affordable Care Act, better known as
Obamacare. The penalties were supposed to begin this year, but the
Administration delayed them until next year. Reacting to this expensive
mandate, small businesses are working to find ways to avoid
penalties. In particular, some businesses are working
to shift their employees to Medicaid, the health insurance program for
low-income Americans that has been expanded under Obamacare. If low-wage
workers qualify for Medicaid, they can be enrolled in the program with no
penalty to their employers. In addition, some small businesses are looking at
offering limited health plans, covering preventative care but excluding
expensive treatment such as hospital costs. Still other businesses are
reducing employees’ hours.
What This Means For Small Business:
The Wall Street Journal says that some tactics are likely
to generate controversy. Whether or not that turns out to be the case,
Obamacare’s mandate is a burden for many small businesses.
Additional Reading:
The Wall Street Journal reports at length on the
issue.
Open enrollment is upon us and Obamacare requires everyone to have health insurance or pay a tax penalty. Find out What you Need to Know
