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Health Insurance and the Affordable Care Act

HEALTH INSURANCE AND THE AFFORDABLE CARE ACT 6

HealthInsurance and the Affordable Care Act

HealthInsurance and the Affordable Care Act

Asthe level of economic growth progress, thepolicies on different variables policies continues to undergoreforms. For example in the US,the health systemhas undergone several analyses. President Obama’s one primaryobjective was the approval of the Affordable Care Act dubbed as theObama Care. The systemrequires that every citizen of the nation enroll for an insurancecover. Furthermore, it is mandatory for employers with staff morethan 50 to registerhealth protectionfor their workforces. The policy was faced with rejection whileothers appreciated the system.The paper encourages employers to take health cover for their staffand it also expounds on the advantages of the scheme to workers andits disadvantages to the organization.

HealthInsurance Policy for 50 full-TimeEmployees

Inanalyzing the plan that will beadoptedin offering insurance cover, thetwo most significantfactors that areputintoconsideration are the cost and the services providedby the premium protection.In this context where the organization seeks to include50 full-timeemployees,severalplans canbe adopted(Network, 2016).The most feasible plan in this regardis that the cover should offer group plan with no exemptions ofmarketplace tax credits. In this type of plan,theemployer gainsthe advantage of tax benefits because of providinginsurance health coverageto workers.

Theinsurance cover that I will enroll for is the health reimbursementplan which is commonly known as the Section 105 Medical ReimbursementPlan. It comes along with several advantages, whereby,for example, it does not break the DOL principleand therefore exercise tax isput into consideration.Since the company is a small scale,it is viable for fewerpenalties compared to large scale companies(Network, 2016).Secondly, the health reimbursement plan puts no limitations on theamount of money an employer can contribute to the insurance coverprogram.

Onthe health economics analysis, for high-incomeearners they can consider having a marketplaceinsurance cover. In this context,if they choose to enroll in this type of insurance it would mean thatthe contributions that are made by the employerform a large part of the scheme.The high-incomeearners may opt for this kindof cover because it offers many options and a variety of protections.However, to the employers,it will serve as a disadvantage(Networks, 2016).Itisas a result of the group plan nullification,and the organizationissubjectedto taxes which are an additional cost to the company.

Thelifestyle and the choices by the employees may influence the type ofhealth insurance cover the organization will take. Similarly,when the employees are few,it is normal that an employer can offer the premiums of choice to theemployees. In the scope where the employees areembeddedon high standard lifestyles then it would mean that the insurancecover for them is expensive, thus increasing expenditures for thecompany. A general plan for all employees in most cases serves beston the pigment of cost minimization

Implicationsof the Affordable Care Act

TheAffordable Care Act was faced with a lot of rejection especially byemployers because it added cost to the production budget. For thecase of my organization, it has more than 50 workers hence it is arequirement to enroll for insurance cover.Joiningfor this type of assurance cover is associated with some benefitstogether with disadvantages. Itis worth noting that, in this setting, theemployee is on full account a beneficiary of the policy.

Theadvantage of this policy on productivity analyses includesboosting the welfare of the employees. Maximizing employees’ healthis an incentive in creating an ambient working environment. Itimpliesthat the employees will maximize their effort in their duties thustranslating to highproductivity in the institution. Furthermore, inthe analysis of health economics, health laborer are the mostproductive and creative when it comes to labor input in theproductionprocess. Most importantly, is the fact that the policy offersprotection to employees. Lastly,as afirm,the process of production cannot be interfered with by absentees thatcomeas a result ofsicknessand shortage of workers due to accidents in the work location.

However,the policy isassociatedwith the primarydisadvantage of cost addition. It is in every organization’sobjective to maximize profits at a reduced cost of production. Anincrease in the cost of production would mean that the prices of thehealth care services will increase.Firmsmay decide to increase prices of their finishedproducts toaccount for high cost incurred during the production process. And anincreasein the price of goods and services will influence the demand and thesupply of same the commodities(Networks, 2016).Therefore in this situation,the policy will act as deceptiveto the organization. Besides, the health insurance policy providesadditional role and responsibility to the group.Time and funds are valuable assets in ensuring the successof any company.

Conclusion

Theworld is dynamic,and there isaconstantevolutionof policies in the diverseelements of the economy. Due to this type of changes they call forvariations in our institutions and our daily activities as well.Analyzing the financial feasibility and financial implication of thepolicy is very crucial so that one can identify how it affects thecosts of production and consequently the pricing of the outputproducts. Some of the policies lead to disadvantages while othersthey bring along desirable benefits.

References

Network,H. (2016). ObamaCare Health Plans.Retrieved November 24, 2016, from HRAs, FSAs, and Employer HealthcareArrangements: http://obamacarefacts.com/hras-fsas-and-employer-healthcare-arrangements/

Networks,H. (2016). ObamaCare Health Plans.Retrieved November 25, 2016, from What is Affordable EmployerCoverage Under Obamacare?:htp://obamacarefacts.com/affordable-employer -sponsored-coverage