The Pros and Cons of Obamacare

October 20th, 2012
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The Pros and Cons of Obamacare


The Affordable Care Act of 2010, also known as Obamacare, has been a lightning rod of for politicians, talk show hosts, businesses and families since the concept was introduced. Despite the controversy, everyone agrees that we need to decrease the number of uninsured Americans and reduce healthcare costs, and there are key components of the legislation that most Democrats, Republicans and Independents do support.

Allowing young adults to stay on their parents’ insurance until age 26 Banning insurance companies from denying coverage for pre-existing conditions Banning insurance companies from cancelling policies because a person becomes ill Creating an insurance pool where small businesses and the uninsured have access to insurance exchanges to take advantage of large group pricing benefits Providing subsidies on a sliding scale to aid individuals and families who can’t afford health insurance.


These components can be considered the pros of Obamacare. But even some of the pros can get dicey. For example, while government subsidies to assist people purchase insurance are popular, there are bitter disagreements about whether or not the government should be able to mandate that they have to purchase health insurance, whether it is purchased privately, through an employer or through a government program.


In more general terms, many oppose Obamacare because they believe it doesn’t go far enough to address healthcare costs. Many call it a federal government takeover of healthcare and insist the free market could do a better job addressing skyrocketing healthcare costs. Many believe it’s not properly funded and will blow a bigger hole in the deficit while actually increasing healthcare costs. Many feel the bill was ramrodded through Congress before legislators had a chance to read and analyze it.

But the mandate to purchase health insurance, even though the legislation has been ruled constitutional by the Supreme Court, is at the core of all opposition to Obamacare. And this mandate goes beyond uninsured individuals and families.
Some companies and individuals will choose to pay the excise tax, or fine, instead of paying monthly premiums, which will likely be significantly higher. Companies that do not to supply a healthcare plan will be forced to pay an excise tax of approximately $2000 per employee per year. This is another factor that the law’s detractors point to as a reason why Obamacare will be ineffective.
When Obamacare goes into full effect in 2014, staffing companies will be required to offer minimum essential coverage to all employees, including eligible full-time temps and contract workers. Although minimum essential coverage details and eligibility requirements are still being sorted out, it is expected that those who work 130 hours per month for three months will become eligible. Bear Staffing has already enlisted the help of health benefits consultants to minimize the impact of healthcare reform on our operations and our clients.
Will the presidential election affect the law? What will the final version of the law actually look like when enacted? Is there enough support to repeal a law that the Supreme Court has already deemed constitutional?
It is important for every business and individual to stay on top of this historic legislation, as Bear Staffing has been doing for several years, whether you find Obamacare to be historically good or historically bad. For more information or to ask questions, feel free to contact us or email