What the collapse of health care reform means to us

What does the collapse of Congressional efforts to reform health care mean to us in small businesses? Certainly it raises many questions and provides few answers. These questions came to mind:

  • Is the IRS under a Republican Trump administration likely to enforce the tax penalties that it fought so hard to repeal? I suspect not.
  • Will consumers feel emboldened to try different coverage and strategies not endorsed by law? Probably only a few assertive small business people with good financial advisers.
  • How much of a financial boon is this collapse for doctors, hospitals and medical service providers? The Standard & Poor’s Health Care Select Sector Index has gained more than 15% so far this year.
  • How will insurance companies that provide individual and small business insurance react? Possibly by non-renewing policies.
  • How will government encourage insurers to enter markets without health insurance providers? Loss prevention guarantees.
  • Will premium subsidies for low income people be available? They still might be cut back.

I intend to focus my own efforts on issues that are more easily controlled by small businesses including the use of Health Savings Account, Health reimbursement Arrangements and Flexible Spending Accounts. More on this will follow.



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