Sunday, July 07, 2013

Obamacare provision delayed...

There's a lot to that has been written about a recent announcement that a provision of the Obamacare law passed in 2010 will be delayed one more year from January 2014 to January 2015. Basically what's being pushed back is the provision where employers who have at least 50+ employees who work over 30+ hours per week would be forced to provide health insurance.

Having to quickly scan any articles about this shows that many of the talking heads out there are looking at this with political eyes. Think about it next year is not only state elections but congressional elections. Not that I've been paying attention to any forecast on how either of our major parties look in both houses of Congress.

Think about this however. When Obamacare was passed in 2010 who could've anticipated the trouncing the President's party would take at least in the Congressional elections with the Democrats losing control of the US House of Representatives. Would maintaining this provision prove precarious for Congressional Democrats heading into 2014?

Also another aspect which interests me is the lens through businesses will look at this announcement. Without a doubt this legislation is well meaning intended to help many Americans gain access to health care that was beyond their reach. It's already expensive to go see a doctor or to get care for any ailment and of course many employers aren't exactly able - if not willing - to provide any sort of health care coverage for their employees.

As a matter of fact an article that I have read on this subject suggest that this delay will prove beneficial to those who would in the food service, retail, and hotel industries. Hopefully responsible employers who value their employees will be able to do what they can to provide health insurance for their workers. Because of this law and its well meaning implications we may have heard where some employers were already talking about cutting worker's hours in advance.

Also I associate this with the minimum wage workers. I believe in the idea of moving up in the work world getting promoted or gaining skills to be able to get better jobs in the labor market. Alas a well meaning health care mandate and a potential rise in the minimum wage seems like a good idea. Unfortunately it seems that this may have adverse effects on the workers in the short term at least as business seek a way to cope.

In any event it would be interesting to continue to read all analysis of the decision of Obama's administration to delay implementation of their landmark achievement so far. What would be the implications for those affected businesses and would this help the political prospects for either party?

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