The health industry officially accounts for one-sixth of the American economy.[i] Yet the effects of reforms to our health care system will go far beyond the health care sector and will impact every business in the United States.
The reforms in the Patient Protection and Affordable Care Act (PPACA), along with the Health Care and Education Reconciliation Act (both passed in March 2010), will have numerous far-reaching consequences for businesses. In particular, the new law will:
- Significantly restrict the choices of employers and their employees with regards to health insurance coverage
- Raise taxes on businesses and create significant new paperwork burdens
- Discourage job creation and growth in the economy
In evaluating this new health care legislation, it’s important to consider not only how the new law impacts the medical system, health care costs, and quality of care provided but how the law affects businesses, workers, and the general economy. Unfortunately, as this policy brief details, this law will have a significant negative impact on the business climate, will discourage business expansion and job creation, and will slow economic growth.