The Role of Law in Business and Society
Vernon Padberg III
December 23, 2014
Impact of Law on Businesses and Society
In today’s world, the healthcare law is having an impact on virtually every person in the United States. In the beginning of 2014 those who are uninsured must purchase coverage either on their own, through an employer's plan, or through a health insurance exchange. However, if the individual chooses not to get coverage then that person will end up having to pay a tax penalty, but those that are insured will continue to enjoy key mandates of the law such as free preventive care and coverage of adult dependents up to age 26, but at the expense of higher out-of -pocket costs.
Since the Federal preemption in the healthcare industry has grown considerably in the last 10 years, most notably the Patient Protection and Affordable Care Act or Obamacare signed by President Barack Obama in 2010, there has ...view middle of the document...
Insurance companies will no longer be able to turn down patients for having preexisting conditions and will not be allowed to enforce spending caps on patients.
The impact on the healthcare law also has an effect on how businesses hire their employees, through the employer mandate act businesses that employ more than 50 employees and that do not offer health insurance to their full-time workers can be fined up to $2,000 per each employee that is not covered. And since no company with fewer than 50 full-time employees will face this penalty, there are concerns that the employer mandate creates a perverse incentive for businesses to employ people part-time instead of full-time (Prial, 2012).
Impact of healthcare law on personal level
The healthcare reform act has changed my life because it required that my former employer offer healthcare coverage, and being a locally owned franchise that employed over 50 employees within its 10 stores that had never offered the option of sick pay or insurance coverage before the act. I was not able to take sick days without pay, nor was I able to see a doctor in case of an injury without having to pay a huge out of pocket bill. Also having a family this made it harder to control my overall spending on how I live my daily life on having to budget on groceries, gas, and everyday expense. Now I can see a doctor whenever with a small co-pay and not have to worry about what will happen to me.
State and federal laws play a major role in the choices we make on a daily basis whether we like it or not, and the case discussed shows how legal decisions related to healthcare can have the potential to radically change the landscape for individuals and businesses. Individuals that do not get coverage would get taxed and businesses could face significant fines if they don’t provide coverage to their employees.
Prial, D. (2012). Businesses Ponder Impact of Health-Care Reform. Retrieved from http://www.foxbusiness.com/industries/2012/03/28/individual-mandate-just-half-debate/
Tsai, G. U. (2011). Patient Protection and Affordable Care Act. Retrieved from uth.edu.