President Barack Obama made history on March 23, 2010 when he signed the Patient Protection and Affordable Care Act into law, creating health care reform that was deemed “the most monumental in decades” by many major new networks. The bill is purported to have wide ranging effects, including a mandatory healthcare policy for those who do not have it provided them by a workplace and healthcare policies being issued with no regard for pre-existing conditions. Businesses with over 50 full-time employees are considered “large” and must provide healthcare for their employees or pay a penalty.
The 906-page document includes many other provisions, as well, but the question largely remains: How will the Patient Protection and Affordable Care Act (popularly known as ‘Obamacare’) affect local businesses?
The answer is varied. Some businesses, such as Chase Steel Services, will not feel many effects from Obamacare at all.
“They will be doing nothing differently because they already provide their employees with health insurance,” senior Gabbie Chase said of her family’s business. Chase’s parents started the manufacturing shop in 1995. “Obamacare will not have a large effect on their business.”
Spicy Pie will be similarly unaffected.
“There are certain levels of requirement to meet the needs of receiving healthcare,” senior Brandon Molland said. “Our full time employees do not meet the needs of Obamacare.”
Other local businesses will not be so lucky, however. The Shack is a downtown restaurant owned by the Wilhelm family. The business started in 2011 and may face financial difficulty due to the new legislation.
“It will force my mom to not grow as a business with new employees,” sophomore Shelby Wilhelm said. “If she is forced to pay health insurance, she can’t afford it.”
One of the purported effects of the “full-time” provision is speculated to be an increase in part-time workers. Under Obamacare, if an employee works more than 30 hours on average over a year, they are considered full-time. As such, it has been suggested that businesses will start cutting hours to fit under this limit.
For The Shack, at least, this will not be a problem.
“No part time employees’ hours will be affected,” Wilhelm said.
Though the bill is passed and beginning to take effect, its long term effects are still speculation at this point. Time will tell how Obamacare will go down in history.