Obamacare Mandate Delay Saves Big Business

Shares of hospital stocks fell, as news comes out of the White House that one part of the Affordable Care Act, the large-employer mandate, will be postponed a year until 2015. This directly impacts businesses with more than 50 employees, but is not to be confused with health exchanges or, more importantly, the individual mandate that requires everyone to buy insurance. 

In this video, health-care analyst David Williamson discusses how important the large employer mandate is for Obamacare, who this delay impacts, and why investors in hospital stocks could see this sell-off as a buying opportunity, including which stock is his favorite in the sector.

Still in the dark about how Obamacare might affect you and your portfolio? Don't worry -- you're not alone. To help prepare investors for the massive changes coming to the American health-care system, The Motley Fool created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare," and discover how the law may impact your taxes, health insurance, and investments. Click here for your free copy today.

Follow David on Twitter: @MotleyDavid.


Read/Post Comments (14) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 04, 2013, at 1:19 PM, pharkme wrote:

    Why can't the stubborn democrats just call this thing an absolute bust?

    I know, it's because they (including their constituents) NEVER do anything wrong, ever.

    Proof? See Bill Clinton.

    More Proof? Richard Nixon and Obama.

  • Report this Comment On July 04, 2013, at 1:48 PM, pbmanx2 wrote:

    Obama says hes for the little guy so he delays the obamacare for the big guys while the little guys have to pay of coarse they dont have to join

  • Report this Comment On July 04, 2013, at 2:15 PM, tjj059 wrote:

    This bill was passed without anyone reading it or understanding it. Obama lied and said it would make health care more affordable. It will cost us all more and small businesses will not hire anyone and will cut people to part time. The family doctor will not survive unless they join up with a hospital. Obama is a lier and and a joke of a president. He was elected because he's black. Only God knows why he was re-elected. Holding off this part of the plan is only a ploy to buy more democratic votes in 2014. Just another way to buy votes.

  • Report this Comment On July 04, 2013, at 2:20 PM, Passin1 wrote:

    It's a problem when not all large employers have the requirement. Then, there would be no competitive disadvantage. Make union shops cover employees - - problem solved.

  • Report this Comment On July 04, 2013, at 3:44 PM, doco177 wrote:

    1. Millions are losing the insurance Obama promised they could keep. Because ObamaCare forces employers to offer expensive Cadillac plans but also offers the option of paying a fine for not providing health insurance that can be cheaper than providing it, between seven and twenty million Americans are likely to lose their health insurance coverage according to the Congressional Budget Office. The original estimate was closer to four million.

    2. The cost of healthcare premiums is about to further skyrocket. Premium costs have already exploded, but that is a slow-motion explosion. In the near future, we could see costs double or worse. Naturally, these costs will hit an already burdened middle class hardest.

    3. Lost jobs. Lost jobs.

    The Federal Reserve's March beige book on economic activity noted that businesses "cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff."

    Human resources consulting firm Adecco found that half of the small businesses it surveyed in January either plan to cut their workforce, not hire new workers, or shift to part-time or temporary help because of ObamaCare.

    4. Potential doctor shortages that will mean rationing: The healthcare industry is already a bureaucratic quagmire. ObamaCare is about to add steroids. As the profession becomes tyrannized by government, the talented people currently practicing medicine plan to get out sooner than expected. Who knows how many will choose not to get in. Doctor shortages are what lead to the nightmare known as rationed care.

    5. Somewhere around $800 billion in tax increases will hit America's middle class. This added burden will not only further oppress a middle class already reeling from a drop in wages over the last few years, but could damage the overall economy.

    6. Inflation, the cruelest tax on the poor. When businesses get socked with added costs brought about by higher taxes and burdensome government mandates, they pass those cost along to the consumer in the form of higher prices.

    7. Added bureaucracy. Even those Obama lapdogs over at the Washington Post's Wonk Blog are admitting that applying for health care is about to get more burdensome than the byzantine paperwork involved in buying a home.

    8. To cut costs or to avoid having to provide insurance, workers on the economic margins are already losing hours, which means a lower paycheck. There are a million sad stories in ObamaVille; here are just a few of them.

    9. ObamaCare is projected to add $6.2 TRILLION to a deficit the GAO has already declared "unsustainable." That's "trillion" with a "t".

    10. More taxes than currently estimated are likely to hit because of situations like this one.

    11.Muslims, Amish, Native Americans, Congress are exempt from mandate and penalties under Obamacare that the rest of us have to pay.

    The govt becoming more involved in health care is the reason the costs have increased. So Govt creates a crisis, then provides a solution that comes at the expense of liberty and freedom, costs trillions, and by most accounts won't solve the problem but in fact make it far worse.Corruption, incompetence, disregard of the Constitution, and lying are integral to the way that this country is being run.

    Three years ago, Obama, Democrats, and his media lied to us about cutting the cost of health care, being able to keep our insurance, and not taxing the middle class.

    Today, those lies and what ObamaCare is and will do to the working and middle class are the biggest untold story in America.

    Just refuse obamacare..REFUSE..If only a mere 20% of the over 300 million population of the USA refuse Obamacare the government would be overwhelmed to even think they could penalize or mandate every citizen that refused to participate in the most corrupt and unlawful ways which it was passed that circumvented the constitution of the United States.

  • Report this Comment On July 04, 2013, at 6:33 PM, Jarhead44 wrote:

    This Obamacare is the worst thing to hit America since I can remember and by delaying it, you see that large businesses are not acting on it yet and if it were repealed, I'd bet you would see an increase in small businesses and people going back to work.

    Unlike what Hussein Obama ran on - Economy and Jobs, he hasn't done one thing to help. All of his controversial actions have put us in harms way in more ways than just one.

  • Report this Comment On July 04, 2013, at 7:09 PM, ronboltp wrote:

    The delay may help big business, but I think it is clear that is not the reason Obama did it. He delayed it until after the mid term elections so the democrats would not have their heads handed to them like they did in 2010. I would like to know how Obama is able to make changes to laws that were passed by congress and signed by Obama. What good is making laws if he can change them at will.

  • Report this Comment On July 04, 2013, at 7:12 PM, demon48 wrote:

    This is really strange while our government indoctrinate our children to political propaganda and send them home to use the children to promote the Democrats health care better known as Obama care. If it isn't it should be against the law, especially when tax dollars are being used to elicit children to promote a health care bill that parents are against. Does the children receive both opinions before they are sent home and are they equally disseminated to the children? One thing really and truly bothers me how an individual who represents the Democratic Party suggest that this wasn't a political decision when the president tweeted that the healthcare better known as Obama care was going to be delayed for companies who provides large amounts of employment while everyone else will be paying into the system only those who are working for large companies will be given an extended year. How many others in United States have been given exemptions to this healthcare better known as Obama care? then he had the audacity to suggest that the young people I'm referring to anyone over the age of 18 who doesn't have insurance but were in college noted in education and education which doesn't promote any jobs that they will be able or allowed to go on their parents insurance now who's going to make up the difference once they go on their parents medical insurance? Does what's troubling here is that most of these parents who's got children that's in college not are they coming home but they're coming home to stay to live in now our governments wants to saddle the parents with additional expenses. These parents are getting very close to retirement age and now they got it continue to sponsor their children not only with food clothing alcohol access to the Internet but also healthcare. One would think that a person retires that be able to travel to see sites which have never seen in their life, but then I wouldn't be able to do this because of additional expenses. What is truly unique is that this government insisted that if you're graduating from high school and go to college get an education that way you'll make more money. That would be great if there were jobs available. However what this did do though was to keep the children out of the unemployment line. But this individual who was defending Obama care his reply was while Republicans did this. I don't care if this is been going on for thousands of years if it was wrong then it's wrong today. Somehow these politicians believe that because someone was able to do something immoral or in ethical it justifies them doing the same thing. Whatever happened to this transparency is Democratic Party was that provide the American people 

we keep getting snookered people you have to wake up were getting taken to the cleaners those in Washington who are involved in corruption misuse of government funds should be looking for new job debating whether they're going to be promoted at the very least left in the same position they were in. Do we really want people who are incompetent or negligence representing us? When people talk about transparency I believe them to say that we're not going to follow the same game plan as predecessors before them, but rather transparency to me means just that that everyone who's been elected to office will be there when laws are created that they'll be afforded the same opportunity as any other politician there be no doors locked and always the primary goal would be serving the people the citizens of this country. while our politicians failed to come up with an answer to the deficit we are getting shortchanged as an American citizen, we as citizens were disenfranchised here in a state of California by the highest court in United States. Twice the people went to the polls and cast their vote that marriage is a union between man and woman the majority the people felt that this was and is in the best interest of the California resident. But a select group of individuals overturned what the majority of the people of this state wanted based on a simple loophole and that was the majority doesn't count if it goes against the will of the few who are in power. Nancy Pelosi, Dianne Feinstein, and Barbara boxer to include Gov. Brown should be impeached because they didn't support the will of the people they supported their own political agenda their own personal beliefs and not that of the people they forgot that they represent the people they are not the people. California is a disgrace to the Constitution of the United States

  • Report this Comment On July 04, 2013, at 7:18 PM, providerone wrote:

    Why delay the implementation of this key obamacare component? The 2014 elections. The Obama administration knows what economic devastation it will bring. Therefore, they want to postpone its implementation until after the 2014 elections.

  • Report this Comment On July 04, 2013, at 8:08 PM, 2smartforlibs wrote:

    You miss the point of the overlord letting this side a year. THIs isn't a bust this is exactly what this was about in the first place and the low information liberal that see this as free got sold a bill of goods. Now the employer is off the hook and if smart they will drop all health care no fuss no muss. You on the other hand ore on you way to the exchange to buy single payer health care that leads right to rationed health care. Obama 1 American people 0. Thanks so much for drinking the kool aid libs. I know this is still to complicated for the low information crowd to understand but just wait your about to pay up

  • Report this Comment On July 04, 2013, at 8:22 PM, rivahrat wrote:

    By what authority does the President have the right to declare parts of laws he's not going to enforce? The business portion sets up the individual portion. If you delay one, don't you have to delay the other? How can anyone plan if a blog by an Assistant Secretary can come out at any time? Doesn't Congress have to act? Where's our Constitution?

  • Report this Comment On July 04, 2013, at 11:07 PM, sabebrush6 wrote:

    To me, obamacare just looks like a giant gov't run Ponzi Scheme anyway.

  • Report this Comment On July 05, 2013, at 2:00 AM, lowerplanedweler wrote:

    let say I don't want to get on my companys health plan and want to pay the first and second year fines, the company has over 50 employees, does the company PANIC and start thinking that at a later date during the year that I may join a state exchange and leave them open to excessive fines? Does this not taking the companies health plan put me in DANGER of losing my JOB, either thru a LAYOFF or just getting FIRED for any reason because I live in a right to work state

  • Report this Comment On July 05, 2013, at 2:39 AM, Littleeccy wrote:

    Obama will decide what laws to obey and which to ignore it doesn;t matter what congress thinks or she signs, `

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2523547, ~/Articles/ArticleHandler.aspx, 9/18/2014 5:53:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement