The health care reform legislation recently signed into law will provide patient protection and health insurance for millions of Americans currently without it, but it may also provide a few benefits to local businesses. Do you know how it may affect you? "This legislation will affect everyone from employers to employees, of both large and small businesses," said Dave Garth, president and CEO of the San Luis Obispo Chamber of Commerce. "We want our members to be prepared for, and well-informed of, any and all of the regulations this new law mandates." Although no one can say for certain exactly how this new law and upcoming regulations will affect local businesses in the coming years, here are a few things to keep in mind:
- Coverage Subsidies. Small employers that provide health insurance for employees will be eligible for a tax credit.
- Insurance Reforms. Within 6 months from the date of enactment, all existing health insurance plans will be subject to new regulations that prohibit lifetime limits, rescission, and excessive waiting periods.
- Individual Mandates. Citizens and legal residents will be required to have a certain level of health coverage, or pay a tax penalty.
- Health Benefit Exchanges. In 2014, state exchanges will be established for small businesses and individuals to shop for health insurance.
- Employer Mandates. Most employers with 50 or more employees must offer coverage to employees, effective in 2014.
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Dr. Fred Vernacchia, medical director of San Luis Diagnostic Center, strongly opposes the new law because he says it will result in less coverage, higher costs for employers and less take-home pay for employees. "Although we've been promised that they’re not going to tax any individual or business making less than $200,000 or $250,000 a year, businesses will pass the increased cost onto employees, and as a result, taxes will not increase, but take-home will go down," Vernacchia said. "And employers are going to make sure they don’t get over 50 employees because the costs will be horrendous." However, those in favor of the new legislation say the effects will be positive. "The status quo prior to this legislation was unsustainable. This legislation, while it’s probably not perfect, is necessary, and it will morph and change over time as it moves forward," said Dr. Vance Rodgers, president of the San Luis Obispo County Medical Association. "It's possible to cover all of the new people with insurance in San Luis Obispo, but we clearly have a shortage of primary care doctors in this town." Susan Polk, of Susan Polk Insurance Agency Inc., has specialized in health insurance since 1988. She says the bill contains more good than bad. But she said to be careful when making any changes to your current insurance plans. "If you don’t make any changes, your current plan can be grandfathered in, but if employers make any changes to their current plans, then they’re going to have to comply with the legislation," Polk said.
"The most important thing to do is keep a very close relationship with your insurance broker, because that’s the person who’s going to sort through this mess and make sure you’re in compliance with all of the upcoming regulations," Polk added.
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