It’s been a rough week for Obamacare. Last Tuesday the White House announced it would delay the employer mandate of the Affordable Care Act until 2015, giving businesses with 50 or more employees an extra year to figure out how to provide health insurance. Because of this the law has been under major scrutiny since many critics believe this is proof of failure. Though this delay is definitely a huge setback for morale, there could be some good that comes out of it.
But first, the cons.
Besides all the remarks about how Obamacare is now a disaster and will never work, the delay will probably make the law more expensive next year. Those who don’t receive health insurance from their employer will now have to turn to the exchanges to find it. Plus these people are more likely to be lower-income workers meaning that many of them will be eligible for subsidies (incomes up to 400 percent of the Federal Poverty Level) which cost the government (and us) a lot more. And it gets a little worse than that too. When you apply for an exchange, the government is no longer requiring proof of income to qualify for the subsidies (I guess just try to keep that on the down-low). Paying for subsidies is one of the biggest expenses for Obamacare. And to help pay for them, businesses were going to help out, not just by providing insurance, but from fees for not following the employer mandate.
And there’s more. The national health insurance exchanges are falling behind schedule which are supposed to be ready by October 1st. The law requires at least two insurance companies for the exchange and at least one that’s not-for-profit. This is supposed to create more competition in order to lower premiums. So far, only the Blues (Blue Cross Blue Shield) have applied for the national exchange. But they already dominate the country without much competition.
Okay, deep breath — now the pros. I like to find the light in any negative situation.
First, this delay is a relief to many businesses and mostly those who are right on that 50 employee border. A lot of businesses revealed plans to cut workers or workers’ hours to offset costs of buying more insurance. Now they have extra time to figure out how to make the law work efficiently for them. Yes, you can argue that the Obama administration is once again being swayed by big business, but like it or not, businesses are made up of people too.
Second, the employer mandate doesn’t really affect that many people (relatively speaking). Most large businesses already provide health insurance (about 95 percent of them in fact) — it’s pretty much the backbone of the American health insurance system. And of the companies that do not provide insurance, about 10,000 out of six million, they employ only 1 percent of American workers.
Third, delaying a somewhat significant part of the law shows that there is room to adapt and reflect on what is working and what does not. Taking a year to reconsider and revise the employer mandate, in my opinion, leaves room to consider other options that may work better — reconsidering a livable wage (to make health insurance more affordable)? Reconsidering a public option? Reconsidering more comprehensive plans for medical cost control? Hey, a girl can dream.
All-in-all, the employer mandate delay is an eye sore for the image of Obamacare. Is it a complete disaster and train wreck? I don’t think so. If you look at it this way, the main goal of Obamacare is to expand coverage and non-insured employees at large companies will still be able to purchase insurance through the exchanges. Cost control was never a priority but maybe now the Obama administration will see that it should be.
