The Patient Protection and Affordable Care Act (PPACA), commonly known as Obamacare, is the new reality for American employers and workers. There are a lot of questions around the new law, and like all major legislative changes, there will be a learning curve as it is implemented in the months ahead.
But one thing is certain: Temporary staffing agencies stand to benefit from a boost in demand for their services, as the law requires companies with more than 50 full-time employees to provide healthcare benefits or pay a penalty. Firms that specialize in working with small to mid-sized firms determined to remain below the 50-employee mark, are especially well positioned.
An All-Time High
The media and the general public alike are abuzz about the new federal healthcare mandate, with good reason. While a recent Gallup poll showed that only 22 percent of Americans were confident that Obamacare will make healthcare better for their families over the long term, they nevertheless have to comply with PPACA or they, too, will face financial penalties in the form of an increased tax burden.
- Temporary employment as a percentage of total employment is nearing an all-time high in the United States. Stock prices related to the industry have skyrocketed since President Barack Obama won a second term, as his reelection solidified the future of PPACA, despite public uncertainty about the future success of the program.
- In addition to temporary staffing, the health insurance and pharmaceutical industries are likely to benefit from Obamacare. Insurers are poised to gain millions of new customers who will be required to purchase health insurance plans, many of which have prescription drug riders.
- Implementation has begun. As companies and individuals adjust to PPACA, initiatives like Enroll America and Organizing for Action already are hard at work to raise awareness and insurance plan enrollment. Enroll America recently launched a multi-state campaign to sign up millions of uninsured Americans for health coverage, while Organizing for Action launched a major public outreach campaign on national cable television. Both groups are closely aligned with the Obama administration.
Make sure you’re prepared to advise and properly steer your clients through this major transition and its impact on their staffing and benefit structures. Stay on top of developments through Alternative Staffing posts – and contact our team members to dialogue and strategize with you as PPACA implementation plays out. Our expertise is here for the asking!