Businesses Increasingly Turning to Lawyers to Sort Out Implications of 'Obamacare'
Nossaman Partner Richard Spohn was quoted in the Daily Journal article "Businesses increasingly turning to lawyers to sort out implications of 'Obamacare'," about considerations for businesses as they approach the deadline when the federal Affordable Care Act takes full effect in just under a year. Employers are faced with the choice between offering health insurance at high costs or paying a considerable tax for not doing so.
The article noted that some employers are getting creative with strategies to avoid high costs, from reorganizing entities to bring employee counts below 50, as well as making employees part-time. In some cases, paying the tax for not covering an employee might be more cost-efficient than providing insurance.
Mr. Spohn is quoted as saying, "The penalty is much less expensive than coverage would be; it's just that simple." He continued, "But employers realize that the value of having healthy workers is substantial. If it were simply a matter of the numbers, the decision would probably be easy."