Impact Of Health Care Legislation Hr 3962 On The Outsourcing Industry

President Barack Obama had a hard won victory on Saturday night (the 7-8th day of November 2009) when the landmark health care reform legislation (HR 3962) was passed with 220-215 votes. Now if everything goes the Obama way, then by the end of the year 09 Affordable Health Care for America Act would apply as a law impacting almost fifty million US lives. But what does this Act actually imply? How does it stand to impact an average US life? How does the Act affect the outsourcing industry at large? Through my article below I endeavor to answer these and many more questions.
Ab-initio we will refresh the fundamentals of federalism, stating the Roles, Duties, Nature, Scope and Restrictions on the government in a written federal constitution. Next we proceed to see whether the above attempt by the federal government to accede healthcare legislation is ultra-vires the powers granted by the US Constitution.

What is Federalism?

According to the traditional classification followed by the political scientists, constitutions are either unitary or federal. In a unitary constitution, the powers of the government are centralized in one government viz., the Central Government. In the federal constitution, on the contrary, there is a division of power between the federal and the state governments in a way that they are both inter-dependent and independent at the same time.
As we all know that Constitutions are organic documents which operate as fundamental law. The governments and their organs owe their origin to the constitution, derive their authority from the constitution and discharge their responsibilities within the framework of the constitution. The judiciary has the power to declare a law unconstitutional if the law is found to have contravened any provision of the constitution. The American Constitution is the oldest and a well praised example of federalism.

What are the powers granted by the US Constitution to the State Government?

Powers reserved for State Governments are:
Establishing local governments
Issuing licenses (driver, hunting, marriage, etc.)
Regulating intrastate commerce
Conducting elections
Ratifying amendments to the U.S. Constitution
Providing for public health and safety
Exercising powers which are neither delegated to the Federal Government nor were prohibited from the States by the Federal Constitution (residuary powers)
Framing other domestic law (for example, setting legal drinking and smoking ages etc.)

What are the powers granted by the US Constitution to the Federal Government?

Under the Constitution, powers reserved for the Federal Government are:
Printing of money
Declaration of war
Establishing the armed forces
Entering into treaties with foreign governments
Regulating commerce domestically and internationally
Establishing post offices and issuing postage
Making laws necessary to enforce the Constitution

What are the powers shared by Federal and State Government?

Under the Constitution, the shared, or “concurrent” powers are:
Setting up courts
Creating and collecting taxes
Building highways
Borrowing money
Making and enforcing laws
Chartering banks and corporations
Spending money for the betterment of the general welfare
Acquiring private property with appropriate compensation

What is the HR 3962 Act ?

The HR 3962 Act conceptualizes a new, voluntary, public, long-term care insurance program to help purchase services and support for people who have functional limitations. The Act endeavors to form a new national program to provide affordable coverage for those who cant get health insurance today because of pre-existing conditions. Under this, the insurance companies must spend 85 cents out of every premium dollar on medical services, thereby fostering the expansion of Medicaid and improving the Medicare. Under this, the young adults, till the age 26, are covered within their parents policies.

The Obama administration intends to attain this by creating mandates. As a self-sustaining public insurance option (that is financed not by tax dollars but by insurance premiums), this provides an alternative to and competes with private health insurance companies, on a level playing field. Additionally, the Act intends to eliminate the antitrust exemption for health insurers and medical malpractice insurers thereby fostering competition thus targeting the existing monopolies in the health insurance market. It aims to establish a new mandatory essential benefits package that shall become the minimum quality standard for employer plans, with the passage of time. The package places a cap for annual out-of-pocket spending, at a maximum of $5,000 per individual and $10,000 per family to prevent bankruptcies from medical expenses.

This Act requires the employers to either provide insurance to their employees or contribute to the cost of their coverage through the public plan/exchange, though the small businesses are exempted from this requirement.

Arguments regarding Constitutionality of HR 3962

The legal fraternity is divided between two schools of thought about the constitutionality of the Act. First school believes that the Act is unconstitutional and places reliance on Articles I 8 and V of the US constitution and on Tenth Amendment. They claim that their argument is supported by the celebrated case of MARBURY v. MADISON, 5 U.S. 137 (1803) and some federalist opinions. The second school of thought places reliance on Article I 8 and the celebrated case of McCulloh v. Maryland, 4 Wheaton 316 (1819); Steward Machine Co. v. Davis, 301 U.S. 548 (1937); United States v. Butler, 297 U.S. 1 (1936) and some federalist opinions. An in-toto analysis of these school of thoughts would conclude that the true interpretation of the word general welfare in Article I 8 of the U.S. Constitution can only determine the constitutionality of an Act like HR 3962. Till date the court opinions have been more inclined towards Hamilton (Federalist 33, 83 etc.) and Story rather than Madison (Federalist 41, 45 etc.).
Simply put, when the government mandates welfare as a quid-pro-quo for premiums collected, such welfare translates to nothing but a tax liability for the country men. Such an attempt by the government to regulate insurance sector by masquerading as an industry player is inspired from socialism. I personally feel that socialism is a Marxian concept and may not go well in an economy with capitalist foundations. The good thing is that people all over the world should buy insurance; this however turns bad when the government forces people to do so.

What are the implications of HR 3962 on the Outsourcing industry?

The object clause to the Act states that it is meant to provide affordable, quality health care for all Americans and reduce the growth in health care spending.

In reality, the act is a victim of haste. Ideally if the intention of the Obama administration and the object clause of the Act were actually in-sync then the administration should have awaited a confirmed indication of the end-of-recession. The administration should have first looked at strengthening the fundamentals of the economy, by:
better regulating the existing insurance sector,
improving the US agrarian culture and making the country self sufficient regards its food requirements,
checking the cost-of-living index and
creating more jobs in the private sector.
But if the intention is to make more and more Americans dependant on Federal Government for basic requirements, then the attempt is bang on.

Impact on the outsourcing industry:

Prima-facie it may seem complex but there are clear indications for the outsourcing industry to benefit once the HR 3962 is implemented. The benefit roots from the fact that the employees will become expensive for the employers post this Acts applicability. Now given the very competitive market scenarios, thin profit margin and the inability of the employer to transfer this increased cost to the end consumer, the employer is forced to search for the less costly alternatives. It is needless to say here that the Act magnifies the already existing labor arbitrage opportunities internationally. To appreciate the existing labor arbitrage opportunities you can refer to my older blog post.

Construction Industry In Kazakhstan Fostered By Government-initiated Programmes

One of the most prominent programmes prepared by the government is the State Programme on Forced Industrial-Innovative Development for 2010-2014, the main aim of which is to diversify the economy and increase its competitiveness. The programme calls for the expansion of several sectors, such as chemicals, nuclear and manufacturing, and to this effect, numerous investment projects are being implemented. Within the programme, 227 industrial plants and facilities have already been completed, at a total cost of $6.2bn. In turn, within the Road Map programme, 1,535 social system facilities were renovated in 2009-2010 as well as 2,634 educational facilities, 764 healthcare facilities, 119 sports facilities, and 361 cultural facilities. This led to an 18.6% increase in the value of renovation and reconstruction works in 2010.
However, government support was not sufficient to counterbalance the reduction in volumes of private sector investment. As a result, there was a reduction in the volumes of both residential and non-residential buildings, with housing construction being the most severely affected. The share of residential construction work as a proportion of the total volume of construction output in Kazakhstan fell from 19.3% in 2007 to 5.8% in 2009. In 2010, there was a slight increase in housing construction value, but the figure was still 62% lower than the figure in 2007, when this market area reached its peak. Overall, construction output grew by 1% last year and a similar growth rate was seen in the first half of 2011.

The total value of investment in residential construction decreased by 2% in 2010, though this could be considered mild in comparison with the 41% decline observed in 2009. State support continues to be provided and, coupled with increased volumes of loans, hope of a recovery on the residential construction market in Kazakhstan is strong. In the first half of 2011, the value of capital investment in the sector increased by 24.3%, with almost half of the total investment coming from the Kazakh people. Another positive sign of an ongoing revival on the residential market is that the number of buy/sale transactions has increased substantially, which indicates that demand for housing is back and strong. Housing development will also continue to be supported by the government and substantial amounts have been allocated for this purpose through the 2011-2014 housing construction programme.

This press release is based on information contained in the latest PMR report entitled Construction sector in Kazakhstan 2011 – Development forecasts for 2011-2013.

For more information on the report please contact:
Marketing Department:
tel. /48/ 12 618 90 00
e-mail: [emailprotected]

Inland Revenue P46 Tax Questions With Notes On Accepting The P46 Form

A new employee may not have a P45 due to circumstances of first job, student, first employment in the current financial year, immigrant worker, P45 lost or perhaps not issued by a previous employer or issued late. If a new employee does not give the new employer a P45 on the day employment commences then the employer has a responsibility to ensure the new employee completes a P46 form

Completing the Inland Revenue P46 form is the method an employer uses to advise HMRC about the employment of a new employee who does not have a P45.

2. P46 forms should be sent to HMRC on the first pay day they are paid allowing a short period of time for a new employee who does not have a P45 to obtain one.

3. A new rule was introduced from 6 April 2008 if the employee has ticked either box A or B then the P46 revenue form does not have to be sent to HMRC until that employee earnings reach the lower earnings limit. PAYE records still need to be produced by the employer but official notification to HMRC is not required unless the lower earnings level is exceeded.

Should the earnings of the employee continue to be below the lower earnings limit then the earnings and employment would still be advised to HMRC on the P35 annual employers return.

4. If the new employee does not complete the Inland Revenue P46 form before the first pay day then the new employer should complete section one. Section one includes the employee name and address, date of birth and national insurance number.

5. If the employee does not have a national insurance number then the employer must also advise the job centre. It is important to advise the authorities when the employee does not have a number to avoid illegal employment laws. The P46 revenue form can still be submitted to HMRC without a national insurance number who have the facility to trace the number from the information supplied.

While preferable for the employee to sign the P46 form the P46 tax form can be submitted by an employer without the employee signature.

6. If the employee does not complete the P46 the employer must deduct tax using a BR tax code taxing all earnings and excluding personal tax allowances.

7. The tax code to be applied to new employee earnings is dependent upon when the employee joined and which of the boxes A, B or C are ticked on the P46 tax form.

If box A is ticked then apply the emergency tax code which from 6 April 2008 is 543L and after 7 September 2008 and the new tax code 603L. Tax is deducted on a cumulative basis. If box B is ticked then apply the emergency tax code which from 6 April 2008 is 543L and after 7 September 2008 and the new tax code 603. Tax is deducted on a week 1 or month 1 basis.

If box C is ticked then apply the BR tax code. Income tax is deducted on cumulative basis.

If none of the boxes A, B or C are ticked then apply the BR tax code and deduct tax on a cumulative basis.

8. If the new employee has ticked box D then student loan deductions should be made with effect from the first pay date provided the earnings level for deduction of student loans has been reached. Refer to the student loan deduction tables at Student Loan Table to determine how much should be deducted.

9. P46 forms can be filed online by an employer. When the Inland Revenue P46 form is filed online the employer should also have kept a record of how the information submitted was obtained.

10. Before the P46 Inland Revenue form can be filed online the employer must have obtained the facility to do so by registering with HMRC for a PAYE scheme. The HMRC website contains free software that can be used for this purpose.

Table Management Software – Making Catering Business Efficient And Systematic

The time gone by when there was no systematic process for running a catering business except the fact that catering industries had to rely on their traditional way of entertaining customers by employing people as a worker. The time changed because of the introduction of many innovative technologies, including table management software.

Today the catering industries have a very distinctive nature of method for promulgating their business by adoption the novelty of table management software by maximizing its potentiality and preloaded features.

How will it affect the catering business?

We are quite aware of the fact that unsystematic process of handling guests accounts for tremendous loss for the catering industry in long term period. If the industry doesn’t show willingness of adopting innovative kind of software technique such as this, then there is high probability that it won’t flourish in the business. Tough competition is order of the day and this is because of the reason that companies need to have a thought for this software.

The software has proven track record of benefiting your catering industry in quite a significant way. One of the notable features of it is that it gives your guests about an empty seat thus reducing your effort of doing the same for them. Other feature of is includes giving you a systematic organization of your guest’s preferences and other key things related to your catering industry.

Now think for a while – employing manpower is good to boost up the performance of a catering industry but when it comes to the technology especially the part of it being used to systematically organize things which would otherwise be time consuming if your employ workforce for that.

The beauty of the technology is that it is one of the most reliable ways of helping mankind experience comfort and convenience at the same time of giving them a very systematic approach of handling things. Hence, software technology for catering industry lends credibility of removing discomfort caused by too much interference of hindrances like inefficient workforce and others.

So, if you are frustrated out of them, it is high time you prioritized this innovative technique to make your catering industry flourishing. Table Management Software extends you convenience and comfort in the blending segment of systematic approach of how to make your catering business easy and technically efficient. You can purchase one of the best services related to this from any renowned company. In this context, always prioritize the company with good market reputation.

for more information please visit here: Event Management Software.

Nutraceutical Industry – Great Healthcare Business Opportunity

From the decades, consuming nutritious nourishment was reflected as the best medication to treat and avoid numerous illnesses. Those days, there was scarcely seen an individual with any perpetual ailment. Anyhow, with the evolving way of life, nourishment propensities and natural issues, now you can see consistently individual debilitated with some basic sicknesses. It can be cerebral pain, back agony, eye issues and a few such wellbeing issues. It has expanded the interest of dietary supplements, prescriptions and medications in the nutraceutical industry. It gives scope of sustenance and health awareness items utilized for keeping up worthy condition.

The pharmaceutical products demand has been expanded to incredible degree from most recent few years. Healthcare products survived from a huge number of years to treat and keep the illnesses. The countries putting best efforts in nutraceutical industry to produce healthcare products for range of diseases and health conditions have been developed to great extent. Indeed numerous pharmaceutical organizations are taking their interest in developing products including both nutrition and pharmaceutical. The most of the people, who dependably need to carry on with their life in a sound manner, like to keep their body healthier. Some even choose nutritional healthcare products more as compared to consuming medicines for their health. Due to the chances of reaction or any side effect from the medicines, people always look for better option to treat their illness.

The nutritional products are either utilized separated or get decontaminated from the original item. The principle point of nutraceutical industry is to give best conceivable dietary supplements, medicinal items, herbal products and handled nourishments. Such items guarantee to help your wellbeing issues all the more successfully when contrasted with the healthcare products with effective active pharmaceutical ingredients. These products are formed from the natural plants, foods and contagious sources. In most of the healthcare products, these sources are utilized as the primary requirements for the connection of nutrition and wellbeing. All these sources are formulated, tested and developed for the healthcare products. The regulation is implemented by the FDA. The substances found in specific products are considered as the successful solution for the wellbeing.

These products are checked in the rundown of option drugs for the wellbeing. These products also claim to treat and keep a few noteworthy illnesses too. They are remarkable for giving a few restorative points of interest for the long haul wellbeing. The wide range of such medicinal products is accessible in the business sector today, in this way help restorative field in treating individuals with the assistance of common sources.