Mid-Sized Businesses Face Challenges with the Affordable Care Act

Mid-Sized Businesses Face Challenges with the Affordable Care Act



The Affordable Care Act is causing business owners to face a lot of challenges which can affect their bottom line. The new law, also known as Obamacare or Health Care Reform is requiring changes that are actually very difficult for companies as well as costly. With the high cost involved in implementing the changes, their business goals might not be met.

Many Companies Are Not Aware

According to a survey that ADP research has recently finished, most companies have reported difficulty with the fundamental healthcare altering changes. The awareness is surprisingly low, according to the report. Very few companies know how to handle the requirements that the Health Care Reform act disclose. For example, the decision makers of key benefits are not aware of the requirement to let their employees know of any aspect of insurance exchange.

Few Companies Understand the Law

The total of benefits decision makers and human resources that are confident in their understanding of their responsibilities is 17%. The rest of the businesses and decision makers don’t have full understanding of the law. As a result, they are faced with a lot of potential issues.

Many Businesses Didn’t Comply

The lack of understanding has caused many professionals to not even honor the new law. The survey reveals that the Supreme Court was not expected to enforce the complete law. As a result, they did not comply.


The Tough Situation

The Tough Situation

This puts a lot of mid-sized business owners in a tough situation. One factor in this is that they are expected to behave like smaller business while obeying regulations for larger businesses. This really brings a lot of difficulty to the businesses.

What Qualifies as a Large Business?

According to certain parts of the reform law, a company is a large company if it has more than 50 employees. However, federal standards would qualify them as small businesses. As a result, they are no longer allowed to shop for small-business tax credits. They also are not eligible for new employer insurance marketplaces or small-business exemptions to health coverage rules.

The Actual Cost

To add to a lack of understanding of compliance to the new law, there is a lot of costs involved in implementing the changes in the company. The ADP survey states that 82% of mid-sized companies consider cost to be a barrier to achieving business goals while supplying health insurance. This intimidates the mid-sized business owners.

Looking for New Options

Employers are also going to have to look for new options because of the insurance overhaul. Among the things being considered is the high cost “Cadillac” plans. The ADP states that these types of plans carry an excise tax of 40%. Employers will likely have to deal with these costs as well.


Other elements

The Other Element of Affordable Care

The health insurance provider tax is another element of the ACA. The federal government charges insurance companies according to how many people are covered. This cost is then passed on to the employers which might even pass on to the employees.

The Trickle Down Effect

Clare Krusing, who speaks for America’s Health Insurance Plans, calls this a trickle-down sales tax. This is because it makes consumers pay more for a service. This tax is resulting in higher priced insurance premiums.

Executives Expanding

Executives still don’t know a lot about the costs of Affordable Care Act. The lack of knowledge has rendered strategic decision making of business leaders impossible. A lot of executives are trying to expand their business with investments in technology and other assets with recoveries from a difficult economy.

Future Investments

Deloitte has a released a report on March 2014 that show new products and services as well as employment and training to be great areas of investment. Over 1/3 of the companies are trying to either upgrade their technology or pay for new equipment.


Legal Expenses

Legal Expenses

The National Federation of Independent Business states that the law will make business growth for small businesses very costly. One example of this is a restaurant that gains a 50th employee will be faced with a penalty for $40,000 without healthcare coverage.

Some Businesses Cut Corners

Some businesses try to handle this by firing employees. They can also put part timers in place of full timers. A lot of business also outsource their tasks.

Opposition to the Law

There are people that believe that the new law should be at least revised. One person named Jost believes that the law should be replaced with something more effective in order to make it easier on the employers. Robert Gibbs, along with many employers, believes that this will be one of the first things to go. However, time will tell how things pan out for the Affordable Care Act.


Article provided by NECHES FCU, an Equal Employment Opportunity Employer.
Neches FCU is a well-known and trusted Texas Credit Union with an awesome team of professionals ready to provide services to our members.
When their doors open at any of the nine service outlets, our goal of “Ultimate Member Satisfaction” becomes the sole focus for every staff member.
They are respected for a personal, dynamic and fast-paced work environment, providing a memorable service experience, and where clients are known by their name.

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Five Office Mistakes That Cost Millennials Promotions

Five Office Mistakes That Cost Millennials Promotions

There are a lot of ways a person can get a promotion, but things can happen by their own hand that can cause them to lose the promotion. You can avoid these things by simply knowing what they are.

Knowing Too Much


Knowing Too Much


You may think that knowing a lot about the company and what they do is going to get you the promotion you need. This can help, but it can also make the bosses think you know more than them. They may skip over you thinking you’re arrogant instead of just a person who wants to know what you need.

You can get to know the company, but keep some of that knowledge to yourself. Know who you work for and what they do for others so you can work on making it better. If you are working hard, it will show and the bosses will see it. That way you won’t seem arrogant, but you will be seen as a hard worker.





If you are spending all of your time in the office, then you are probably spending way more time there than you should. This can look like you are trying too hard. If the bosses feel you are working harder than you should be, then they may think you are willing to burn the candle at both ends. While some bosses may think you are doing the right thing, others will see how working so many hours can hurt you mentally among other things.

Try to keep things at a good balance. This way you will be able to know you are only spending the right amount of time at work and you can keep it at a perfect amount. The last thing you want is to work yourself into the ground.





If you are calling in all the time or showing up late, then you are risking your ability to move up within the company. You may not realize you are doing this, but you are causing harm to your own career. If you call in because you simply don’t want to work, the bosses will see you as someone who doesn’t want to work or can’t hack it in a higher position.

You can help prevent this kind of thoughts by a boss by working every day. You will most likely have a few days where you are really sick and can’t work. This is different than if you just don’t want to come to the workplace. You can get a doctor’s note that will help you to keep your unexcused time down, but your boss may still decide not to promote you if you are missing work too much.

Being Too Anxious


Too Anxious


If you are too anxious and want to get the promotion, you may find you are just hurting yourself. You can slow down and work on certain projects that will help you to get the promotion but will not look like you are moving too fast. You can keep working hard without moving too fast and get the promotion. Your bosses may like the ability to get things done, but they may not want you to push yourself to the point of passing them on promotions.

You can still work hard and get things done, but you can also stay at a slower and steady pace. This means not jumping your boss and taking their promotion because you are getting things done faster. You may think it’s a waste of time to not advance as fast as you could, but it will keep you working at a slow and steady pace to make things happen like they should.

Not Being Social


Being Anti-Social


There are a lot of reasons you may not want to be social at work, but getting to know the people you work with will help you to work better with them. If you know who has the strengths you need, then you can get the help you need when you need it. This can make things better for your work life. Being social gives you ties that will help you to excel at your job.

If you aren’t social, then you isolate yourself from knowing who the boss is and what they will want from you. If you know who the boss is as a person or what they do from day to day, then you will know what you can do to get on their good side and what will get you the promotion.

If you are trying to get the job, then you just need to follow these few simple things in order to make it happen. You will know what it takes to see yourself get higher in the company. You also will stay in the good graces of the boss for a long time to come.

Thanks for reading our business article.

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