GMFC Company has many divisions and more than 50,000 employees. Initially, the company health care proposal had a lifetime advantage of $2 million per enclosed employee or dependent. However, the company only extends coverage to dependents enrolled to a degree program. Subsequently, the coverage benefits individuals up to the age of 22 years. However, PPACA required GMFC to alter its coverage to house new advantages and age limit demands. According to GMFC, changing the current plan coverage to accommodate age limit requirements and new benefit will lead to additional cost. Therefore, the company is considering abandoning health care coverage and subscribing to federal penalties. If GMFC adopts such an action, employees will purchase insurance …show more content…
ACA act recommend that employers should gather data for employees working hours and work details. Similarly, the process will greatly influence small organizations in terms of cost increase (Eibner et al., 2012). Most employers note that the regulations and the laws will contribute to financial storms and lead to increased costs in the years to come especially in terms of compliance expenses. However, employers are taking measures to respond to the ACA. Some organizations are considering inflating and adding a HDHP (Buchmueller et al., 2013). GMFC is considering paying penalties instead of subscribing to the health coverage. Although, other employers will continue to offer health care coverage despite the negative influences on their …show more content…
GMFC is concerned about PPACA new benefits and age limit requirements. The Affordable Care Act comes with a lot of regulations and rules and GMFC considers such regulations cumbersome. ACA considers health insurance a minimum essential coverage when the coverage adheres to ACA new regulations and rules for health insurance. Additionally, the health insurance must entail new rights (Buchmueller et al., 2013). ACA rules stipulates that health insurance companies should obtain a minimum essential coverage and maintain the coverage for a whole year to avoid the fee for not obtaining the health , protection, and benefits offered by the law. GMFC considers these rules difficult and binding. Consequently, GMFC raises concerns that the above regulations and law will raise cost to the company. In other words, the ACA will lead to increased health care cost to many employers in this case GMFC. The cost will rise because employers will incorporate advanced IT infrastructures and take hours of labor to gather extensive amount of data. Additionally, the employers are thinking of offsetting the cost by providing lower health care costs. In other words, GMFC is considering cutting health care coverage and offer each employee a stipend to cut on the rising
Commonly associated with pay for employees, benefits is the second biggest obstacle for management. Like Volkswagen starts employees off at the basic pay the unions would achieve, a similar benefits program should be implemented (Greenhouse, 2014). The passing of the Affordable Health Care Act has made it possible for many citizens to receive coverage but it is basic at best. GMFC should create a plan based off of the Health Care Act and unionized plans and allow for extras to be added on. This allows for employees to pick the benefits package that works best for them.
The aim of affordable care act (ACA) was to extend health insurance coverage to around 15% of US population who lack it. These include people with no coverage from their employers and don’t have coverage by US health programs like Medicaid (Retrieved from, https://www.healthcare.gov/glossary/affordable-care-act/). To achieve this, the law required all Americans to have health insurance which is a reason of controversy because, it was inappropriate intrusion of government into the massive health care industry and insult to personal liberty. To make health care more affordable subsidies are offered and the cost of the insurance was supposed to be reduced by bringing younger, healthier people to the health insurance system. This could be controversial, if older, sicker people who need the coverage most enter the market but younger group decline to do so. The insurance pool will be unbalanced and the cost of coverage will rise correspondingly.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) supports workers, who have lost the right to their health benefits, so that they can keep their employer-sponsored group health plan in force. The need for continued insurance coverage is necessary when coverage is interrupted due to the loss of a job, reduced working hours, death of the insured employee, divorce or even other circumstances that affect a person’s life. A person who qualifies for the group health benefit is usually expected to pay for that premium. The employer may increase the premium up to 102 percent, which is allowed under the provisions of COBRA. The law applies to all employer-sponsored group plans who have 20 and above employees and urges them to ensure an extension of the health coverage that is temporary (Magill, 2009).
This is based on a study done by the Congressional Budget Office in 2009, which concluded this increase "will lead to higher net medical spending" (Amadeo). The increased number of benefits actually causes the cost curve to rise (Tate 122,123). PPACA will impose a tax on those individuals that do not have insurance by the deadline in 2014, and the tax will increase each year (Amadeo). PPACA also requires insurance plans to cover ten specific health concerns or it fails to meet their criteria (Amadeo).
Sever misinterpretation of the legislation distorted public opinion. Many people did not understand the impact that the ACA would have on employers and the coverage that they would be mandated to supply. Companies who employee greater than 50 employees are required to make coverage available and contribute to the cost or pay a fee; however, they qualify for the Small Business Health Options Program (SHOP) and are given tax breaks to help defray the cost (Reisman, 2015). Based on Reisman’s research, employers who have greater than 50 but fewer than 100 employees can obtain coverage for employees through state-based insurance exchanges and those who employee less than 25 full-time employees also qualify for tax breaks to help with costs. Another common misconception was that the ACA would afford illegal immigrants the opportunity to have healthcare. The ACA law excludes undocumented immigrants from these new coverage options and offers reduced benefits for those legally present (Shaffer, 2013). There are some parts of the Affordable Care Act that are hard to understand or conceptualize. One example understanding how the ACA will save health care dollars in the long run when it will significantly increase healthcare spending during
Affordable health care law or Patient Protection and Affordable Care Act (PPACA) is the novel commandment that touches the practice of public health or community health nursing. PPACA, also known as the Affordable Care Act, (ACA) is a united State federal decree signed into law by President Barack Obama on March 23, 2010. The ACA proposal emphasizes three foremost approaches: 1). Dropping costs and increasing productivity so the organization works. 2). Proposing inexpensive, manageable coverage for everybody. 3). Accentuating deterrence agendas in the public health setting (Anderson, K. 2009).
The Patient Protection and Affordable Care Act passed by President Barack Obama is a significant change of the American healthcare system since insurance plans programs like Medicare and Medicaid (“Introduction to”). As a result, “It is also one of the most hotly contested, publicly maligned, and politically divisive pieces of legislation the country has ever seen” (“Introduction to”). The Affordable Care Act should be changed because it grants the government too much control over the citizen’s healthcare or the lack of individual freedom to choose affordable health insurance.
The ACA expanded Medicare/ Medicaid, strengthened employer based care, and included an individual mandate. Before the ACA there were 32 million people uninsured and “approximately half, or 16 million, will gain coverage through an expansion of Medicaid” (Barr, 2011, p. 292). To improve the cost of care the ACA required employers with more the 50 employees to offer plans and individuals would have to purchase plans from the government. “ACA does not address directly the issue of disparities in access of care based on a patient’s race or ethnicity, it does impose on providers the responsibility for collecting data on the race or ethnicity, primary language, disability status, and similar demographic characteristics of patients cared for” (Barr, 2011, p. 293). The ACA strives to give health coverage to all but the power still lies in the private sector.
The Affordable Care Act (ACA) is a federal that was signed into law by President Barack Obama on March 23, 2010 to systematically improve, reform, and structure the healthcare system. The ACA’s ultimate goal is to promote the health outcomes of an individual by reducing costs. Previously known as the Patient Protection and Affordable Care Act, the ACA was established in order to increase the superiority, accessibility, and affordability of health insurance. President Obama has indicated the ACA is fully paid for and by staying under the original $900 billion dollar budget; it will be able to provide around 94% of Americans with coverage. In addition, the ACA has implemented that implemented that insurance companies can no longer deny c...
The steady rise of healthcare costs and the ever increasing cost of health insurance premiums are making it harder and harder for employers to pay healthcare premiums for their employees. In the past, it was almost a given that employers picked up the tab for health insurance coverage. The health coverage was usually exceptional with little or no money paid out of pocket by the individual for the insurance premiums. Those appear to be the “good old days”, with fewer and fewer employers shelling out money for health insurance premiums and demanding a larger percentage to be paid by the employee. Other employers are simply unable to financially provide healthcare coverage for their employees and have stopped all together.
With the passage of the ACA in 2010, this trend of micro-step expansions of health insurance coverage relegated primarily to the public domain experienced a dramatic change as enormous expansions of both public and private health insurance occurred. The
Then came the question, should the employer be the one responsible for providing health insurance. While everyone on the panel could agree that our health care system in 2008 was broken, most seemed opposed to the alternative solution of universal healthcare. There is an incentive to the company to offer health insurance to a human being that may receive the opportunity to receive health insurance from another company. However, taking health insurance responsibility away from the employer and making it the government’s responsibility would increase availability and possibly eliminate freedom of
After the inception of ACA that is Affordable Care Act on March 23, 2010 various policies and regulations has been proposed which has more controversy (www.healthcapital.com, 2013). Affordable health act has impact on the stakeholders in different manner. The main concern in the medical field is the input cost which is increasing continuously. This is the biggest challenge for the US government as the increasing cost makes it impossible for the government to allocate appropriate resources in managing the requirements of the ACA public policy. There are more initiatives taken by the US government in implementing the ACA in an appropriate manner by continuously improving the quality of health care at affordable lower costs (www.healthcapital.com, 2013). According to Kaiser Health Tracking Poll conducted in March 2013, about 40% of the public are against the ACA and 37% are supporting the ACA which satisfies the legislative requirements (www.healthcapital.com, 2013). Key issue in health care industry is the quality of doctors and the number of doctors available, this ACA mainly aims to address the issue of all citizens especially poor. The constituency of the act makes the US government to think about the Supreme Court Judgement about emphasising all citizens should have health insurance (NYTimes, 2014).
(c) a requirement that firms with over 50 employees offer coverage or pay a penalty, (d) a major expansion of Medicaid, and (d) regulating health insurers by requiring that they provide and maintain coverage to all applicants and not charge more for those with a history of illness, as well as requiring community rating, guaranteed issue, non-discrimination for pre-existing conditions, and conforming to a spec...
The purpose of ACA implementation is because many people are uninsured due of various reasons, some of the reasons are financial hardship, pre-existing conditions, and work status. The most effective solution to these issues was to formulate