TRUMP'S NEW EXECUTIVE ORDER IS EXPECTED TO HELP SMALL BUSINESS.
As a small business owner there are a lot of extra costs that must be dealt with to stay in business. One of the greatest concern among small business owner along with virtually everyone else is the cost of health insurance. Many believe that Obamacare has made it more difficult for small businesses, but that may be about to change.
Even though Obamacare hasn’t been repealed, and probably won’t be any time soon, President Trump just signed an executive order that may lend some relief to small businesses. The executive order is aimed specifically at providing small businesses some relief, and more affordable health care options.
So, what exactly does the bill do? The order directs the secretaries of the Health and Human Services, Labor, and the treasury to re-establish health care associations, or association health plans (AHPs).
Normally, trade organizations or other business groups would buy an AHP though this new executive order does allow for the creation of new groups to purchase insurance. This would enable more small businesses to form associations for the purposes of buying affordable and competitive health insurance. Trump specifically said that “This would open additional options for employers to purchase the health plans their workers want”.
The president says these healthcare associations were in place for small businesses before Obamacare was signed into law. They quickly became unaffordable to many who were enrolled, specifically the small businesses that benefited from them.
The order also includes Health Reimbursement Arrangements (HRAs). These HRAs would allow small business owners to reimburse their employees for their healthcare expenses. These expenses include co-payments and deductibles that an employee would normally have to pay out of pocket.
This executive order has many provisions that are aimed specifically at helping small businesses cope with the costs of health care while at the same time giving them more choices in the competitive markets that would be created. Hopefully this will live up to its promises.
By UNIKO Media Group