Small businesses getting ready for Obamacare consequences

Small businesses prepare for Obamacare

Posted on 11/5/12 3:50:00 PM

After the election was over and President Barack Obama was announced as the winner of a second term in office, small businesses were reassured of several things staying in place, including the Affordable Care Act, which has been referred to as Obamacare.

Companies are also preparing for possible tax increases if they are making more than $250,000 annually, which President Obama has proposed.

After the election results were released, business owner Jim Fraser called a meeting of 75 franchises to fill them in on what the next four years might hold for them, according to Fox Business. Fraser is the president of Penn Station East Coast Subs and owner of 14 Penn Station restaurants, totaling 250 locations in 13 states.

Fraser told Fox that he wanted to bring everyone together to talk about what they could do to ensure their business protection and what their company could do to remain as successful as it has under the first term of President Obama.

One of the biggest concerns for business owners is healthcare reform, which will require that many businesses begin to display their menu items' calorie counts and other things so that the consumer knows all the nutritional facts.

Ron Nelson, Las Vegas-based business owner of Pioneer Overhead Door, said he plans on continuing the process of what he's already been doing under the first term of President Obama. Nelson said he has provided health coverage for employees for decades, but only recently dropped his coverage from 100 percent of cost to 50 percent of cost because of the increasing prices of healthcare.

According to Nelson, Obamacare has given him the opportunity to benefit from tax breaks for the past two years and his business isn't currently burdened by regulations.

According to MarketWatch, the best way to profit from Obamacare is to buy hospital stocks since utilization rates will increase and uncollected receivables will go down. There are currently about 30 million Americans who are uninsured. Under Obamacare, hospitals are required to serve all patients who show up to their emergency rooms, which is expected to increase the earnings of some hospitals by as much as 25 percent.