Will Obamacare Send Big Corporations and Startups Loophole Hunting?

The first act of the Obamacare three-ring circus has begun. Republicans are up in arms, the government is on hiatus and the country’s biggest corporations undoubtedly have a team working round the clock to find every nook and cranny in the Affordable Care Act.

You’ve surely heard about the impact that the country’s health care fiasco is causing, whether it be from late night TV hosts’ monologues or the “closed” signs hanging on government buildings. The short end of the stick is that a healthcare plan is coming your way, whether you, your employer or your state representative like it. The Affordable Care Act is going to have its own affect on big business, start-ups and investors.

Target employees, get ready to have your hours cut…


Big name companies ranging from Target, to Trader Joes and Home Depot are doing everything they can to escape the mandate’s grasp and avoid hefty penalties. One of the largest loopholes we’ll likely see is the cutting of employee shifts to just below 30 hours a week. By doing this and offering an alternative plan, it works as a loophole since employers don’t get penalized if employees don’t sign up for plans offered.

Great if it’s actually a descent plan, but there’s also a real big possibility that won’t be the case. Say minimum wage Joe puts in 30 hours a week at Fat Cat Industries. He could legally be charged up to $1,074.00 annually for health care coverage, something some might pass on for stuff like putting gas in the family car.

50 is the magic number…


Startups may start small, but when hiring skilled workers with certain talents, can grow in no time. The issue here is going to be dealing with that expensive red tape once they breach 49 workers.

From tech to design and mailorder, there’s a good chance that many companies will start moving to part-time contractors or outsourcing certain workload services. If you can use an outside IT guy and not hit that 50 person limit, why not? Under 50 companies also have the option of using the Small Business Health Options Program to shop for plans.

But back to healthcare…

This new wave of government initiated healthcare is going to usher in with it investor opportunities. New emerging tech companies will aim to act as the healthcare middleman. Sites like StartupInsurance will try to market their own lofty plans to emerging entrepreneurs.

Don’t be surprised if that local walk-in clinic gets an upgrade, too. Firms will look for cost-cutting innovations like varying primary-care options and electronic health care records for those new to coverage.

Whether you work for a big business or are looking to move to or invest in a new startup, just be prepared to recalculate — for better or worse.

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