Will Obamacare Benefit Healthcare Franchises?

The majority of the franchise industry disapproves of the Affordable Care and Patient Protection Act. Many franchises have voiced their concerns that the healthcare reforms will cripple the franchising industry’s future growth and discourage franchisees from expanding.


But what about healthcare franchises and senior care franchises? Will they actually benefit from the Affordable Care and Patient Protection Act?


In light of President Obama’s healthcare overhaul the growth of the healthcare industry as a whole is expected to slow. Many Americans live paycheck to paycheck and remain hesitant to spend– even on healthcare.


Despite the anticipated sluggish progress of the healthcare industry, those businesses and franchises associated with or that accept Medicaid or Medicare will benefit in some  way from the Affordable Care and Patient Protection Act:

  • Primary care providers, physicians who serve as a patient’s main source of non-emergency healthcare, are expected to get a 73 percent raise if they are Medicaid doctors. The Congressional Budget Office estimates that Medicaid will gain 7 million new enrollees in 2014.
  • Employers already take 7.65 percent of workers’ wages to support the elderly and disabled, 1.45 percent of which will go toward Medicare hospital bills.
  • Two new Medicare tax increases will fund the senior healthcare program. Those making $200,000 as a single filer (or $250,000 joint filers) will each pay 0.9 percent more for the Medicare hospital tax.


Long term care insurance gives seniors control of their assets and a choice as to how and where they receive senior care services. This insurance covers hospice care, nursing facilities and adult care facilities. Some policies cover health care services, respite care and adult day care services.

Medicare does not pay for all senior care and usually only provides limited coverage for services provided in nursing facilities and home care settings. Assisted living is not covered by Medicare. Medicare will only pay for extended home health care services if a stringent set of conditions is met. The extent of Medicaid’s coverage is limited and similar to that of Medicare.