Will it? “It won’t” is the simple answer. Detractors there are many but that is only to be expected. The Affordable Care Act, Obamacare in popular jargon, has been the subject of one of the fiercest discussions in the recent times. One major concern is the job market’s stability as a whole. Since the act has a direct association with insurance, all things concerning insurance have been covered by the media ad nauseam. Are insurance jobs a stake?
Small Businesses and Insurance:
Many people fear that the Act cannot but affect insurance jobs adversely; it is felt that a large number of insurance people will lose their jobs and not get a chance to get the best life quotes over 50. This is a conclusion they had arrived at by the notion that a reversal of fortunes will happen in insurance matters. They fear that small businesses that cannot afford to adhere to the Obamacare norms will be forced to take recourse to attrition or, in some extreme cases, even close down. As a result, the insurance cover will not be sought by the workers or by the erstwhile managements. The insurance companies, in their turn, will force a lay-off in their workforce. One is inclined to react to this argument with skepticism. It indeed looks a far-fetched idea.
March 31 Deadline:
January 1 is the deadline to get the process of enrollment started though you need to have insurance in your name only by 31 March. Will non-compliance invite penalty? It looks like it. There are 16 million workers in the country who do not have any insurance cover. Insurance agents are apprehensive about what would happen to the large client base they had built up over the years.
The Government’s Counterpoint:
The administration seems to be of the view that insurance agents siphon away money from patients but the claims settled by the insurance companies are not reasonable. The plan might be to freeze the insurance agents out of the scheme. Some states are allowing insurance agents to carry on with their enrollment of the uninsured.
Some are vacillating, not sure what exactly the Obamacare entails.The federal authorities, however, have a counterpoint. If the act is going to hurt jobs, slow growth rate should have resulted in industries which do not provide insurance cover to their employees. That is not what is happening, they point out.
Individual self-employed professionals who do not have insurance will not any more neglect being insured. There are millions of people who would like to take insurance cove henceforth. This may well result in a spurt of insurance jobs contrary to what many people think. The January 2014 deadline necessitates companies with 50 or more employees to have insurance cover for the employees. This can only work out in favor of insurance jobs. There are going to be new entrants who would want insurance cover and the agents will benefit from this.
In the last half century, cost of Healthcare is the lowest this year. But with Obamacare firmly in place starting next year, insurance activities can only see manifold increase. With a majority of the population slated to come into insurance net, how can jobs be hurt?