How the Healthcare Bill Can Affect Salaries

The Healthcare Bill that was pushed through by the United States government is now a done deal. However, even though the healthcare bill only aims to make healthcare services available to all Americans as much as possible, it is time that everyone should know its effects on salaries and wages. This healthcare bill reform will have lasting effects on employment benefits and wages. It is a known fact that out of all the other developed countries around the world, the cost of healthcare in the United States is skyrocketing.

With the implementation of the Healthcare Bill, all companies will have to balance the cost of healthcare-related services with the competitiveness of their organization. Healthcare benefits are still the best benefit offered by companies. To reduce the costs of production, most companies reduce things such as bonuses, medical insurance, social benefits or activities, and tuition reimbursements. The top benefits that other companies have totally discontinued are bonuses, tuition reimbursements, pension plans, profit sharing, and exercise facilities. The 401(k) plan is the most reduced employment benefit.

These are some benefits that are greatly reduced by the Healthcare Reform Bill. However, on a more personal level, there are still some financial issues that need to be discussed. This Healthcare Bill will now require Americans to procure healthcare insurance starting in 2014. Only those who can declare financial hardships and those with religious beliefs that prohibit certain medical care as well as the American Indians are those who will be exempted from this provision. For those who do not belong to any of these three categories, there will be financial penalties applied to those without insurance. The penalty will start at 1% of their salary in 2014, and it could go up to as much as 2.5% by 2016.

This healthcare reform will also greatly affect taxes as well. There will be an increased tax on those earning more than $200,000 annually, with a 1.45% increase, and their Medicare tax will go up to 2.35%, beginning in 2013. This is designed to help provide Medicaid for poorer, low-income families. These families will also be helped to access insurance through provision of federal subsidies. Overall, the healthcare reform plans to enable 95% of Americans to be covered by insurance, with 30 million uninsured being able to get coverage within the decade. Medicaid coverage will also be expanded so that children will be covered by their parents until they are 26 years old.

However, this healthcare reform doesn’t come cheap. Healthcare insurance will be an added expense for Americans, and healthcare providers and insurers under Medicaid may also experience cuts in their salaries in order to help balance things out.


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