How the Affordable Care Act Affects Knoxville
What does “Obamacare” Mean for You and Your Family
The introduction of President Obama’s Affordable Care Act or “Obamacare” has caused a general decline in hours for many workers and has also caused many businesses to close down or at least consider closing down as an option here in Knoxville. This drastic change is the result of employers preparing for the Affordable Care Act to take full affect.
Starting this year, the Affordable Care Act requires businesses with over 50 full-time employees to provide their employees a health insurance plan
that meets the Affordable Care Act’s standards. Even though the new law is meant to help workers it is doing some harm. In order to avoid purchasing new health insurance plans for their employees, many businesses have begun giving employees less hours and even firing some. The Affordable Care Act also requires businesses to pay a new tax called the “Shared Responsibility Fee” even if they have fewer than 50 full-time employees. Now that many businesses have mostly part-time workers more people are being hired for part-time jobs in order to keep businesses running, but they are being paid less. Unfortunately not all businesses are able to make the changes needed to obey the Affordable Care Act and because of this many business owners in Knoxville have been worrying about the well being of their businesses and employees. Fortunately, these small businesses are not without hope. Some businesses may qualify for SHOP (Small Business Health Options Program); businesses that qualify may be entitled to help paying for new health insurance plans for their employees. However, businesses are not the only aspect of Knoxville that is affected by the Affordable Care Act.
The Affordable Care Act will have a huge impact on all households and individuals in the entire country. According to the “Obamacare Guide”, the Affordable Care Act requires all Americans to purchase either “Obamacare” or health insurance that meets the requirements given in the Affordable Care Act. It also says that those without “Obamacare” or an approved plan will be fined either $325 per adult per home and an additional fee for those with children or two percent of their household’s total income. Which method is used depends upon which would amount to a higher total, but the rates grow. In 2016 Americans without health insurance that meets the new standards will be fined either 2.5% of their household’s total income or $695 per adult as well and another fee for those with children. The good news is that aid in purchasing health insurance is available for those who qualify. Only those whose insurance cost 8% or more of their income or have a FPL (Federal Poverty Level) between 139% and 400% may qualify. To encourage Americans to enroll sooner rather than later, an enrollment period has been set and outside of this time window only special cases may apply. For this year the enrollment period started November 15th of last year and will remain open until February 15th of this year. To balance out this rule, the Affordable Care Act only taxes fines those who have bee without health insurance for over three months. So if you are without insurance for less
than three months you will not be fined.
Despite all the good that may come from “Obamacare”, the idea has been heavily debated since it was first suggested and passed into law in 2010, one of the biggest concerns about the Affordable Care Act
is the new taxes that it establishes and the over all cost of the program. Many Americans still feel that the Affordable Care Act will do more harm than good, but only time will tell how well the program works.
Jasmine Sams
Reporter
January16, 2015
