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The Effects of Health Care Reform on Small Business

In: English and Literature

Submitted By brighttina
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There are many issues facing small businesses today, a few to focus on are, Health care reform, and what it means to a small business owner, what changes will be made to make Health care reform work for employers as well as employee. The next issue is The Unemployment rate, and how job cuts affect businesses, employees and the economy. With the new Health Care reform in place, many changes need to be made in the economy, in personal life, and in the Business world. These new changes bring new problems for some. Health care reform and unemployment are not the only issues small businesses are facing.
People who have no health care coverage are burdened with the worries of having a health issue and having to miss work and or pay for going to a clinic or hospital, therefore there are more people willing to go to work when they are not well, and bringing on more issues. Issues such as fatigue and possible spread of infection This year there are 150 million employer insured people with health coverage, 50 million uninsured, 40 million on Medicaid, 27 million with none group insurance.
It is estimated that in the year 2019 there will be 159 million employers insured people with health care coverage, 22 million uninsured, 51 million on Medicaid and 25 million with non group coverage and 24 million exchanges.
Americans from the ages of 19-29 have no health care coverage.
“Small business owners, on the positive side, beginning this year, will be eligible for a tax credit to help buy coverage for employees if there are less than 25 employees”. “On the Negative side, this is a 2 year only credit, if there are more than 50 employees, the small business will be penalized for not providing coverage”. Unknown .04/05/2010. What Health care means to you, Time, volume 175(13), p28-29.
“While the tendency among younger people, especially, is to move from employer to employer as opportunities arise and circumstances dictate, about 175 million Americans continue to get their health insurance through their employer. Only about 27 million purchase it directly, on their own. For a variety of reasons, not all of which have to do with poverty, 46 million Americans have no health insurance”. Bardwick, Judith, 2008. One foot out the door: How to combat physiological recession.
“More and more, business is complaining that the cost of providing health insurance for their employees and the extra cost levied on them to cover the “free” care that hospitals are required to give are making them noncompetitive with companies from countries where business is not the source of health insurance. Several very powerful constituencies are, therefore, calling for major changes in the American healthcare system, which suggests that some change is likely to occur within the next few years”. Bardwick, Judith, 2008. One foot out the door: How to combat physiological recession.

Small businesses can not afford coverage for all its employees, like big businesses can, therefore leaving the small business to down size, cut jobs, and increase the unemployment rate. The unemployment rate will stay the way it currently is per survey of 57 economists.
This is what the Unemployment rate look like so far this year:
“Even those who do have coverage at work are not free of anxiety. Many are worried they could lose health benefits if they change jobs. People are afraid that if premiums continue to rise, the company will simply end their coverage. Many fear for their very jobs, as employers use layoffs to counterbalance soaring benefits costs. Bardwick, Judith, 2008. One foot out the door: How to combat physiological recession.

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