It doesn’t matter which side of the political fence you’re on, you know that whatever changes will be made to the Affordable Care Act, there will be major changes to employee benefits as well.
Unfortunately, most employees are unaware of how this will change how employee benefits work. And the rest don’t think they will face any problems. But the truth is, the repeal will bring significant changes in the way businesses provide perks to their workforce.
Here’s how the ACA repeal could impact employee benefits:
Subsidized Healthcare Will Become Inaccessible
The Affordable Care Act allowed individuals from all walks of life to get access to subsidized healthcare. This allowed millions that signed up to get access to better standards of living, without the worry of paying out of their pockets for maternity, hospitalization, and treatments for chronic illnesses such as heart disease, cancer, and diabetes.
Healthcare Will Become Unaffordable
This is a no-brainer but healthcare will not only become inaccessible, it will become impossible to afford. Employees on minimum wage will not be able to get access to the benefits of healthcare because employers will be unable to afford medical expensive for every employee.
Imagine a company with more than 500 employees. When the business will be unable to afford healthcare for one employee, hundreds of employees will suffer. Furthermore, employers will have to weigh the consequences of being unable to afford medical expenses for employees.
This will increase absenteeism in the workplace and when employees are unable to perform better because of being sick, the business will lose millions in profits.
Furthermore, in order to fill the gap, employees will look for cheaper and more cost-friendly coverage options. This will compromise healthcare quality and services, leading to poor options for employees to choose from.
More Tax for Employers
Employers who want to provide the best health insurance policies to their employees will have to pay more in taxes in order to do. This will prove to be too costly, forcing businesses to either opt for cheap insurance policies or not provide employee benefits at all.
This means that only multinationals will benefit in the long run while small-scale companies will end up on the back burner.
Learn more about the employee benefits we, at JS Benefits Group, have to offer. Our HR policies and consultancy programs can help your business offer quality perks to your employees. Drop us an email at email@example.com if you want to learn more about our services, or call us at (877) 355 – 6070.