Impact of Health Care Reform Legislation
THE IMPACT OF THE $940 BILLION HEALTH CARE LEGISLATION ON HOTELS AND SMALL BUSINESSES
The Issue:
After several months of heated debate in Congress and widespread objections from the American public, the U.S. House of Representatives passed sweeping health care legislation on March 21, 2010. Two days later, on Tuesday, March 23, 2010, President Obama signed the first bill into law, and on March 30, 2010 he signed a final, adjusted version of the health care legislation into law. This $940 billion legislation is designed to extend health insurance to an additional 32 million Americans and expand America’s health care coverage. It will have significant fiscal impacts on small businesses and individuals over the next ten (10) years.
The Impact:
- This $940 billion health care law will have a significant impact on small businesses, and the way that they provide insurance for their families and employees. Among the law’s most troubling provisions include increased health care costs that will make coverage less affordable for small businesses, and individual mandates that require every uninsured individual to purchase insurance. It will raise taxes by billions of dollars during a severe economic downturn, which will cause an anticipated loss of millions of jobs and significantly deter any growth of the business community in the upcoming years.
- The Congressional Budget Office estimates that the new cost of the health care legislation will be $7,900 per family, or $2,500 per person, on an annual basis. However, several experts have reported that the real costs based on private-sector mandates could be as much as $20,000 per family, or $6,250 per person.
- For businesses with fifty (50) or more employees, starting on January 1, 2014, they will be required to offer health coverage to all employees or be assessed a penalty of $2,000 per employee. Employers will not be required to provide coverage for “part-time” employees per se, but these employees will be counted as “partial” employees to determine if the employer has 50 employees for coverage purposes. Many of the details of how the new law will be enforced are yet to be determined.
- Numerous States have filed legal actions in opposition to the new health care law. In addition, it is anticipated that bills will be introduced in the upcoming months and years to address various aspects of the health care law.
The Legislative Solution:
AAHOA strongly urges its members to do their part by holding the Members of Congress accountable for their decisions, and advocating for a resolution that will allow hotels and small business owners to provide affordable health care coverage for their families and employees. AAHOA will continue to monitor this legislation, and do all it can to lobby for changes that will minimize the impact on hoteliers and small business owners.