Obamacare and the American Business

At first glance the average consumer would think that the new health care law is great. It opens up health insurance to people with pre-existing conditions, and creates competition in the insurance market, lowering prices. However, the ramifications to the corporate world are looking much bleaker. The people who see the most of these changes, would be the doctors. For starters, opening up more affordable health insurance would drive up the demand for primary care doctors by as much as 29%. this would in turn increase the waiting list for an appointment. An example of this is Massachusetts current health care system is almost identical to the new law passed. Some clinics face waiting lists that are 1,600 people long. Investors Business Daily refer to the law as a contradictory strategy that insures Americans will enjoy less health care, of poorer quality, and from fewer doctors.

One of the most overlooked parts of the law is the taxes put on businesses. If an Employer does not provide insurance to their employees, and has more than 50 employees, they get hit with a heavy fine. Ricardo Alonso-Zaldivar gives a good example in his article. "A company with 100 employees, that fails to provide coverage could face a fine of $140,000." This cost would likely destroy a company that was unable to pay for their employees insurance.

One of the industries that will most likely get hit the hardest, is the private insurance companies. The new law introduces a public option to health insurance. Since this is government (tax payer) funded, it will be able offered at a very low price. Thus creating a competition, for the insurance market, and in turn lowering the prices for the other companies. Unfortunately, insurance companies will have a very hard time keeping up with a company that has unlimited assets. The prices will be low for the consumer, but will inevitably drain the insurance companies. On top of their price issues, they will be losing thousands of customers to the new public option.

This bill can do nothing but hurt the current market. The government is pushing for people to get insurance, but at what costs. The hypocrisy of this law is in the fact that Obama believes, forcing people to get insurance will stimulate the economy. On the contrary, his public option, and fines will slowly force employers to cut out employees for the burden they put on the company. This can unfortunately lead to more unemployed, uninsured people who we will put further in to debt by requiring them to go out and purchase health insurance. Why not save money and not buy health insurance? Well anyone who is not insured, living above the poverty line will be taxed %750, or 2% of their income, whichever is higher. This is evidence that the health care law has an inimical effect on the economy, and the employers of America.