Obamacare, also known as the Affordable Care Act, has had both positive and negative effects on the economy. It is hard to say, generally speaking, if there is a side that leads the other as the positive and negative outweigh each other. Financial strains and economic uplifting have both occurred.
Tapered Cuts to Medicare
Over time, Obamacare has been structured to make cuts to Medicare. Senior citizens depend on their Medicare plans to obtain necessary health care with affordable copays.
With these planned cuts, of over $700 million over a period of time, some services may not remain viable to stay in the program. This is one negative effect that may reflect on the preservation of Medicare for future generations, not only the current generation.
Financial Strain on Small Businesses
In order for a business, including small businesses, to not have to provide a health care option for employees, scheduled hours must be 30 or less per week. Business owners that cannot afford to carry a portion of their employees’ healthcare have to make cuts in both workforce and scheduled hours.
The positive here is that employees that do have a cut in hours can get affordable coverage, including dental insurance and vision coverage, through the Affordable Care Act based upon their financial situation.
The negative is that the cut in workforce and hours scheduled per employee may mean lesser staffed businesses, increased poor customer experiences and a decrease in business. It can also mean that a business owner may have to increase the cost of services to maintain full-time staff working over 30 hours to afford their portion of health insurance for employees.
Affordability for Families
The Affordable Care Act finds health plans for families based upon answers to a questionnaire, including the types of coverage requested.
You can obtain multiple quotes by changing the types of coverage that you want. For instance, if no one in your family has vision problems, having vision coverage is probably not necessary. Everyone needs general health and dental insurance, and dental insurance is typically inexpensive.
More Insured Persons
There are more insured persons overall since the start of Obamacare. Some believe that this is due to the potential tax penalties associated with the plans. But some plans, mainly for single persons, are very affordable.
Many Americans think that they cannot afford good health insurance, especially those without dependents. Obamacare is where they can find the best prices for their budget and needs.
Tax Penalties for the Uninsured
It is well known that if you do not have health insurance, you will be subject to a tax penalty for every uninsured person that lives under your roof.
What most do not know is, certain financial situations can cause a waiving of that tax penalty. There is a loophole that you are made aware of when completing your tax return that may surprise you with a waiving of that penalty.
Closing Thoughts
Obamacare has impacted society positively as it has helped more Americans obtain healthcare coverage. Some families have received financial assistance to have healthcare, which is positive. The biggest negatives have come in the private business sector and Medicare, where struggles remain.
