Last week, President Barrack Obama signed into law a bipartisan amendment to his healthcare policy that will have a significant effect over the business world.
The revision changes Obamacare’s definition of a “small employer” so that now, enterprises with 51-100 workers will now be considered within the large employer range, according to Kaiser Health News (KHN). This will have a resounding impact in the American business world. Small businesses, as defined by the government, are mandated to offer very detailed, comprehensive health care plans to their employees that many believe make health care premiums impractically expensive for the employer. Politicians from both parties were therefore in favor of changing the policy in this regard, as larger employers are required to provide less individualized (i.e. cheaper) health care policies.
Before the changes took place, many businesses that fall within the 51-100 worker category were planning on sidestepping the healthcare laws (which are set to take effect at the start of next year) by providing their own, self-funded programs. Now, however, there is far less incentive for businesses to take such measures. This bodes well for the economy and national workforce as a whole, as self-funding workers’ claims is a risky practice. According to KHN, many reinsurance policies are hardly regulated and may have a deceivingly low amount of financial protection. Small companies, therefore, could potentially waste a great deal of out-of-pocket money on an inadequate reinsurance policy.
Now that the amendment has been passed, though, business owners no longer have a reason to pursue a self-funding strategy. This will save small/mid-sized businesses a great deal of money. But, if your healthcare providing company is looking for more ways to save money and get access to fast, debt-free working capital, contact PRN Funding. Healthcare factoring is the best way to increase your cash flow and take on new, advantageous business endeavors.