Small Businesses Uncertain in Acceptance of Reform’s New Rules

[This article posted on June 15, 2010. It is posted within the following categories: Corporate, Politics & The Law, via Michael Douglas, MD, MBA.]

3/23/2010: That was the date that was supposed to change everything — the date the reform bill was signed into law by President Obama. Although the WH focus tonight was squarely on the tragedy that continues to unfold in the Gulf, the potential for healthcare and its role as a policy game-changer in the November midterms continues to loom as an unexpected burden for Obama.

Gone is the self-serving satisfaction he and the WH can revel in until beneficial changes for healthcare consumers begin to trickle in over the next year or so. The trepidation Americans feel over the true impact of the new reform legislation is just another concern amidst a strong recession and weak job recovery. Not only are consumers (employees) feeling the pressure to understand reform and its meaning for them, employers — particularly small employers — are wondering if their responsibilities in financing coverage will become more ponderous than Obama has promised.

Obama has always said that if consumers liked their current mode of coverage, they could keep it — a “provision” of the reform bill the administration has understandably been less than forthcoming on its tenets, given current perception of the short term costs reform will incur at the government level. [WH fact sheet here.] The grandfathering of healthcare consumers’ plans will retain much of their character, the WH insists, unless “significant” market forces dictate otherwise. The vagueness of that “significance” is what worries employers — who initially may be able to weather reform in its early stages, but face the prospect of jettisoning coverage for employees completely by 2014 (the year major changes in reform will statutorily be implemented).

If that option is taken by employers, what’s next for them? The administration and HHS continue to stand by claims that certain incentives (tax credits, perhaps) will be in place for small employers for continued participation in reform. But it’s still a hollow feeling for small businesses to fend for themselves in the wild, wild world of healthcare exchanges. | LINK

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