Economic Issues Simulation Paper

The Affordable Care Act is considered to be a landmark legislation that sought to bring changes to overhaul the health care system within the United States. While the ACA has brought necessary improvements and changes to how health care is handled, it has also directly affected many stakeholders within the health care industry. The major stakeholders of health care are considered to affect each and every aspect of the massive industry, and can be influential. This paper will be specifically addressing the effects of the ACA on the employer stakeholder group. It will talk about the new responsibilities and taxes employers must face, how the ACA is currently affecting employers at the moment and into the future, how the employees and their dependents will be affected by these changes, and finally what strategies employers can take to mitigate

In 1954, Congress passed legislation allowing employers to provide health insurance benefits to employees on a tax-free basis (Sih and Singh 99). This legal provision marked the beginning of the rapidly expanding health care costs still apparent today due to the major incentives provided by the government to obtain employer-based health coverage. The overwhelming popularity of employer-based health insurance has led to a serious market inefficiency resulting from the system of third-party payment. As individuals rely on their insurance companies to pay for their medical expenses, this provides

This insurance encouraged people that had this basic form of insurance to get a second opinion on their medical issues especially elective surgeries. You had to pay for services that you were receiving right away.

The Patient Protection and Affordable Care Act may negatively impact some employees; if an employee has coverage through its employer the insurance premium must be less than 9.5% of their income. For example if the employee premium is $3600 a year and the 20% share of the premium is $720 and the employee makes $45,000 a year; $45,000 x 9.5%= $4275 which is greater than $720. Therefore this coverage would be deemed affordable. However if this particular employee has a family of four the premium for the family would be an additional $7500 a year. In this case this individual would be eligible for tax credits to help afford the health insurance coverage if their employer did not provide health coverage (Lee, 2013).

The employer does not offer minimum essential coverage to at least 95% of its full-time employees. The shared responsibility payment will be $2000 per full-time employee less the first 30. Payment will be due on all employees, even if they accepted minimum essential

The Obama Care employer mandate / employer penalty, originally set to begin in 2014, will be delayed until 2015 / 2016. The Obama Care “employer mandate” is a requirement that all businesses with over 50 full-time equivalent (FTE) employees provide health insurance for their full-time employees, or pay a per month “Employer Shared Responsibility Payment” on their federal tax return (Obama Care Facts, 2014).

If an employer has 15 or more employees and the employer does not have health insurance for them, the government is going to subsided them, but the employer is going to pay a find, since the employees do not get pay enough to buy the

Third, the ACA regulates health care coverage in the United States. According to Lussier et al. (2016), the act mandates that all employers with more than 50 employees provide their full-time employees with health care coverage or face penalties for failing to do so” (p. 494). This act specifies that if organizations choose not to provide employees with benefits, they will be forced to pay a penalty for each eligible employee. However, organizations that do offer employee health and retirement plans must meet minimum requirements and comply with ERISA (Lussier et al, 2016). Employers and employees

When the Affordable Care Act, otherwise known as Obamacare, became a law, one of the requirements of that law was that large employers (Obamacare, 2015) i.e., an employer with fifty or greater employees must provide health care for their employees or face penalties (in year 2016 that penalty will be $3,000 per full time employee). In addition, individuals not covered by an employer provided health plan must pay for their own health insurance (HealthCare, 2015), or they will be penalized financially. As stated in (HealthCare, 2015), the penalty is calculated two different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.

Employers with between 50 and 200 employees face the largest impact of the affordable care act. But, in reality, a study done by the Kaiser Foundation found that 92 percent of companies with 51 to 100 workers already provide health insurance to their employees and 97 percent of employers with 101 or more workers does the same.

Healthcare is expensive and Americans look for the best healthcare they can possibly get. Since consumers are always demanding for better insurance covers, employers are trying to provide the resources that have an effective prices and not raising costs. The Human Resources department in Arapahoe County has recently developed a new health care insurance guide in order to control the County’s rising cost for health care insurance. This project will be experienced on all County’s departments, including Clerk &Recorder 's Office. In this memo, I provide you with a cost-benefit analysis of this new project to change the way benefits are provided on an experimental basis. Based on my analysis, there will be a slight positive return with Benefit-cost Ratio 1.07; however, this new project would be not smart financial decision to be applied on Clerk &Recorder 's Office.

Android offers a major medical plan and a dental plan to his employees who work over 1,000 hours per year. Android has offered this benefit for the entire year 2010. Android pays 50% of the premium cost for the major medical plan for single coverage. This means that the amount paid by Android is limited to 50% of the cost of single coverage even if the employee has a family and elects more expensive family coverage. Android’s plan has a premium cost of $6,000 for single and $14,000 for family coverage. Android pays $3,000 for Geeko and Byte who are single and $3,000 for Analog who is married with a family (Total payment of $9,000). That means that Geeko and Byte each pay $3,000 for coverage under the plan, and Analog pays $11,000 for coverage under the plan (if she elects family coverage). Android paid $14,000 for his own family coverage.

As a “comprehensive major medical insurance policy,” the Dumonts’ coverage includes basic health insurance for hospital, surgical, and physician expense needs, as well as major medical expense coverage. The latter is very important to extend the basic coverage to protect the Dumonts from the financial effects of a catastrophic illness or accident. The policy has a very adequate lifetime cap of $3,000,000 per insured. The Dumonts should continually analyze the health plans from both employers to determine which offers the best overall plan. But, the annual coinsurance, stop-loss amount, and family

Healthcare is a fundamental human right, and you should not get more or less depending on your ability to pay for it. Most employers offer health insurance coverage as a benefit with employment. With insurance rates rising consistently, now companies are trying to offset costs by having the employee’s pay a portion of healthcare costs with a guaranteed issue. With the Affordable Care Act, people who have healthcare insurance is experiencing changes in coverage, rate hikes and making them pay more for a plan equivalent to what they had before. Not all employers offer health insurance to their employees, so they must search for health

Cost sharing can be defined as shares of costs that are covered by insurance companies that the patient has to pay out of their own pocket. These can include deductibles, copayments, and coinsurance (Cost Sharing, n.d.). Within the past ten years, health insurance cost sharing has increased due to the changes in health care which has led to the need for increased deductibles, copayments, and insurance prices in general. The actuarial value is the expected percentage of health care costs that will be enough to cover the average population. The actuarial number for an employer-based plan is 83%, and 59% for an individual plan (Gable et al., 2016). According to the Kaiser Family Foundation (2016), employees are covered by their employer’s