Acme Technologies is a start-up company in the health information field has 100 employees. They rent their offices and the CEO is a 40 year old Generation X’er, who dropped out of medical school to form the company.
As Willy Nelson always said, its been rough and rocky traveling but the company has surpassed their goals beyond their wildest dreams, however, the CEO now finds himself in a precarious position of having to choose between three options.
1) Dropping employee health insurance coverage because of rising costs of the premiums in order to invest in the new the new mobile App with serious upside he is passionate about pursuin but doing so the Acme faces serious penalties in 2014 right when it needs a marketing budget.
2) Reduce his workforce significantly or shift his model to part time because of the employer mandate and penalty requirements in Section 1513 of Obamacare. He called yours truly and learned he faces penalties of up to $140,000 per year if one employee seeks coverage in an exchange and this is the best option for him.
3) Waiting to see what the impact of new Federal regulations will mean to his bottom line. The reality is he needs to compete in the marketplace because the demand for the company’s products has doubled and more employees are needed.
Right now… Acme Technologies like many other businesses is in a holding pattern as it awaits the Federal Government’s next move.