Vol XIV: Ch. 1 The Effects of the Affordable Care Act on Small Business
From the Book: The Refractive Thinker® Vol XIV: Health Care: The Impact on Leadership, Business, and Education.


Summary

The Affordable Care Act is arguably one of the most beneficial legacies of former U.S. President Barrack Obama that presented controversies in healthcare and business settings. This paper took a refractive thinking approach to the potential impacts of Obamacare on the healthcare organization with a focus on small business. The Act affects small and large as well as not-for profit and for-profit organizations though in different and unique ways. Key contentious issue with the Obamacare is the provision that requires employers to provide qualified and affordable health benefits to their employees or pay a tax penalty. As clarified herein this prevision is limited to large organizations with 50 plus full-time employees and full-time equivalent (FTE) employees but not to small businesses. The Act is quite lenient to Small-sized businesses. It has established the SHOP which is targeted as small businesses with 1-50 full-time equivalent workers that want to offer dental and health coverage to their workers. This SHOP benefits the corporations with less than 25 FTE employees, and it is a major boost to small businesses and will help increase employee motivation. On the overall the Obamacare has had a massive effect on the hospital financial management. It has effectively lowered the cost of healthcare for business and improved access to healthcare. The Act may be impacting on the employer profitability and employee motivation; and ultimately the value of business negatively.


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