A Look at the Economic Effects of the Tennessee Healthcare Reform

A Look at the Economic Effects of the Tennessee Healthcare ReformA Look at the Economic Effects of the Tennessee Healthcare Reform

In early 2014, we discussed what exactly the Implications of the Healthcare Reform, also called the Affordable Care Act or Obamacare, were for both employers and individuals who may be employed part-time or are unemployed. Individuals and employers alike are still questioning the benefits of the Healthcare Reform, but some employers, especially those that own or run small businesses, are seeing economic benefits.

Experts believe that the current health care system is not working well for small businesses or their workers. They also concede that small businesses are an important source of job growth in the United States, and thus are crucial to the economy. Small businesses account for a large majority of jobs in start-ups, a key source of innovation and economic growth.

Some feel that the Healthcare Reform will greatly benefit small businesses economically, as many small businesses that provide health insurance for their employees would receive a small business tax credit to alleviate their disproportionately higher costs and encourage coverage. The tax credit would be targeted to those firms with employees whose average wages fall below a certain threshold.

Small businesses are the only ones potentially benefiting from the healthcare reform. Many young individuals who have hesitated in the past to become entrepreneurs are now finding opportunities to start their own businesses. A Harvard Business School study in 2008 estimated that 11 million workers were affected by a “job lock” dilemma. Job lock is when people stay in jobs they dislike or don’t want, solely to keep their health coverage. The healthcare reform was designed, in part, to fix this inefficiency in the labor market, and many are hoping it will make “job lock” obsolete and create new career opportunities, thus helping the economy.

At Barnes Insurance Agency, we not only offer Sevier County Health Insurance, but we specialize in helping both our individual and business clients navigate through the new provisions under the Affordable Healthcare Act, and help them understand what it means for them as an individual or an employer. We will continue to bring our customers information about this important issue that affects all Americans. In the meantime, please visit our Sevier County Insurance Exchange page for more information on the Healthcare Reform, or contact us at (866) 733- 5424.

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