Understanding the “Booming” Impact of Healthcare in 2014 [Interview]
It was one of the biggest issues debated over and over again in 2013, and now in this new year, this issue is becoming a reality. Drum roll please…it’s the healthcare industry, and specifically ObamaCare.
The debates ranged from it’s unconstitutional and should be repealed, it will hurt small businesses and the flop of the website rollout is an indication of the law’s future failure to Obamacare will provide millions with health insurance and it pays for itself and reduces the federal budget deficit.
The pending implementation of the Affordable Care Act had many businesses concerned about finances last year. The health insurance overhaul affects businesses because:
- In 2015, large employers with 50 or more workers have a responsibility — but no mandate — to offer employees health coverage. If they don’t, they may face fines, but only if their workers go to health insurance exchanges and have earnings low enough to qualify for federal subsidies.
- Starting in 2018, a 40 percent excise tax (Cadillac tax) will be imposed on the value of health insurance benefits exceeding a certain threshold—$10,200 for individual coverage and $27,500 for family coverage (indexed to inflation).
Many companies have even cut workers’ hours to avoid negative effects of Obamacare. Under the new law, employers are not required to cover part-time workers.
2014 will be a major year for the healthcare field, affecting not only employers but their employees as well. To help understand what changes the new year will bring, Recruiter.com spoke with Patrick Jones, the chief financial officer at Addison Group, a Chicago-based professional staffing and search firm.
Read on to discover what he had to say about the booming healthcare industry, its effects, and what steps employers can take to prepare for the changes:
1. How does the implementation (and finally getting underway) of ObamaCare impact the health industry in 2014? The healthcare industry will see a sizeable increase from ObamaCare. This is a result of ObamaCare increasing the number of patients using medical facilities. In the past, the uninsured patients would not seek medical care when injured or sick. However, with ObamaCare providing the uninsured with insurance, these individuals will now seek appropriate medical resources to get well.
2. What new jobs will ObamaCare create next year? Since the number of patients is expected to increase under ObamaCare, this will create more jobs in the healthcare industry (doctors, nurses, medical billers, medical coders, physician assistants). In addition, more jobs will also be created in the medical insurance industry. Since ObamaCare now requires medical insurance of all U.S. citizens, the private insurance companies will see an increase from this mandate.
3. Thomas Moran (CEO of Addison Group) predicts 2014 to be a booming year for the healthcare industry. Do you think this “boom” will have positive or negative results? Certainly, the positive results will be the growth in the healthcare industry. This growth will lead to more jobs for those with healthcare related careers. The potential negative impact from ObamaCare is that it may cause healthcare spending to skyrocket and therefore cause health insurance costs to skyrocket as well.
4. Is there anything employers can do now to prepare for such a huge change to the field next year? Employers should evaluate their workforce and continue to aggressively monitor their healthcare spending. They should evaluate their current medical plans and ensure they are compliant under ObamaCare. Also, employers should implement healthcare cost reduction strategies to offset any potential health insurance increases.