What if Obamacare is repealed? How does the employer recoup the monies spent?
Employers could comply with the letter of the law (assuming they find someone who can interpret it) but discover that amendments to the law change or eliminate the need for compliance. Point of fact: the 1099 requirement has already been repealed. Their only recourse for recouping those expenses is to pass them to their customers (think you and me).
What if states don’t set up their health exchanges?
A July 2011 report in The Hill’s Healthcare blog states that only 10 states have enacted laws to establish insurance exchanges, but these exchanges must be set up and running by 2014 to comply with the law. These states have no financial worries about setting up their exchanges because the law guarantees them almost “unlimited sums" so it’s curious that they are not rushing to comply. Even more interesting is the fact that Oklahoma and Kansas returned their early innovator grants to the federal government.
If states simply refuse to comply and set up the exchanges, the law provides that the federal government will step in to set them up. Many states appear to be taking a “wait-and-see" attitude as the court challenges play out in the judicial system.
Author and martial artist Chuck Norris has said, “There’s a reason the majority of the states in our union — 26, to be exact — have defied Obamacare’s legality and are fighting its enforcement right now."3
Will employers watch events play out in their home states and wait for judicial decisions before they move ahead with implementation plans? Only time will tell, but if states can avoid compliance, employers may be able to as well.
However, what if the federal government does not have the funds to set up the insurance exchanges? This is a very real possibility according to a report from Politico. Those uninformed politicians forced to find out what was in the bill after they passed it must feel pretty silly now. You see, “A quirk in the Affordable Care Act is that while it gives HHS the authority to create a federal exchange for states that don’t set up their own, it doesn’t actually provide any funding to do so." Guess who will foot that bill?
I think we all know where the money must come from. Government has no way to raise revenue except by more taxes on an already overburdened tax base.