...The Impact of the Affordable Care Act on Businesses Sadie Boyd Webster University FINC 5000 Abstract This research paper was created to bring a better understanding on how the Patient Protection and Affordable Care Act affect business, government, and average American. Small business owners have historically had a much harder time providing themselves and their employees with insurance due to rising health insurance costs; meanwhile bigger businesses remain largely unaffected due to the leverage buying large group health plans gives them. This problem has only gotten more severe in the past decade. Today, almost half of America's uninsured are small business owners, employees or their dependents. There are around 44 million Americans who currently are unable to get health insurance. The Patient Protection and Affordable Care Act (PPACA,) signed into law by President Barack Obama on March 23, 2010. Several rationales were offered in support of this legislation, including that it would lead to the creation of jobs and the reduction of the federal budget deficit. Everyone is affected by this health care in one way or another. The Patient Protection and Affordable Care Act Consistent with respected economists‟ forecasts, the health care law contains a number of provisions that will eliminate jobs, reduce hours and wages, and limit future job creation. Specifically, the law: * Penalizes employers for failing to offer coverage deemed acceptable by the government; ...
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...Fair? (The Impact of Affordable Care Act on Small Business) On March 23, 2010 President Obama signed into law the comprehensive health reform known as the Patient Protection and Affordable Care Act informally known as Affordable Care Act. According to the Executive Office of the President, Council of Economic Advisors (EOP/CEA), “the key goals of health care reform is to reduce the growth rate of costs while maintaining choice of doctors and health plans and assuring quality, affordable health care for all Americans.” (The Economic Case for Health Care Reform, June 2009) The ACA is created to improve the overall quality of health care delivery and its’ systems while adding new consumer protections. In the ACA there is a clause known as the individual mandate. This mandate requires most U.S. citizens and legal residents to obtain qualifying health care insurance coverage, and if not will be required to pay a tax penalty. Effective January 1, 2014 employers with fifty or more employees that do not provide affordable health coverage will receive an assessment where for those businesses with less than fifty employees are exempt. States have created health benefit exchanges for individuals and small businesses through which health coverage can be purchased at affordable prices. The Department of Health and Human Services (HHS) published several fact sheets and brochures highlighting what the ACA means for large and small businesses, individuals, families and those...
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...The New Health Care Law What should employers know? MGMT 4510 CRN 87885 Legal Issues in Human Resources Dr. Judith Ogden Group Members Jemella Bartley Justin Martin Christie Simon On March 23, 2010, President Obama signed into law the comprehensive health reform legislation, the Patient Protection and Affordable Care Act, P.L. 111-148. Recognizing the disparities among American citizens, with and without health insurance, both Acts focus on ensuring that all Americans have access to quality, affordable health care. Comprehensive health reform addresses the following: major provisions to expand health care coverage, controlling health care costs, and improving health care delivery systems. While many debate the pros and cons of the new legislation, they must prepare for significant changes tiered over the next eight years. Here, we will discuss how the comprehensive health reform legislation affect employers and explain what they should know and be prepared for. The Patient Protection and Affordable Care Act each address essential components of reform: * Quality, affordable health care for all Americans: this function will accomplish a fundamental transformation of health insurance in the United States through shared responsibility. This means requiring most U.S. citizens and legal residents to have health insurance and requiring employers (large & small) to offer insurance or pay a penalty to the government for each employee. * The...
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...The Need for Health Care Reform HCA 410 Professor Henry O’Lawrence December 8, 2011 The Need For Health Care Reform Health care system is now faced with many problems such as high cost of insurance, high cost of medical services, significant numbers of people lack any form of healthcare insurance, and many more people are underinsured. Heath care is not affordable and easy to obtain anymore. With the rising of health care cost, reforms are needed to be more affordable with high quality and efficiency. There are over “46 million people lacking health insurance, but also for those who have insurance the economic downturn is a chilling reminder that under current system, virtually anyone facing a run of bad luck could be quickly wiped out by medical bill collectors”. State Healy, Bernadine M.D. (2009). Providing health insurance for people uninsured and low-cost insurance are major problems need to consider and take it seriously. The number of people uninsured is too high. There are many factors leading to be uninsured including poverty, the economic downturn leading to high rated of unemployment and some working families who cannot afford coverage because too expensive, besides, earn too much to be eligible for many programs which the state's healthcare provider. Offering the healthcare options with advantages for the uninsured with affordable price is needed to take to consideration. Many low income people cannot afford health insurance usually don’t go seek for medical...
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...Health Care Reform from an Economist Perspective Managerial Economics 2/28/2013 Introduction Today there are many Americans without health insurance. This is due to the lack of financial resources they have to pay for the insurance , perhaps due to the unemployment rate and also due to those (younger generation) who choose to opt out of paying for health insurance. Many Americans live day to day hoping they will not get sick. From the results of these rates, President Obama signed the US Health Care Reform into law. The health care reform law encases benefits such as affordability, accessibility, comfort and ease for low income families worrying about going broke if they get sick, health care cost will be capped, and insurance companies will not be able to deny applicants due to pre-existing conditions. Accessibility simply means that insurers would have to expand insurance coverage to all Americans. This means eliminating pre-existing conditions that prevented people from gaining insurance coverage, insuring portability across states, mandating the purchase of insurance coverage, standardizing claims to reduce paperwork and providing benefits and cost information to American people allowing them an opportunity to choose a plan that best fit their needs (Shortell, 2009) Affordability has left uninsured and low income families helpless due to high premiums. The public option is an idea that hopes to establish competition that will drive down insurance premium...
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...Health Care Reform from an Economist Perspective Introduction Today there are many Americans without health insurance. This is due to the lack of financial resources they have to pay for the insurance , perhaps due to the unemployment rate and also due to those (younger generation) who choose to opt out of paying for health insurance. Many Americans live day to day hoping they will not get sick. From the results of these rates, President Obama signed the US Health Care Reform into law. The health care reform law encases benefits such as affordability, accessibility, comfort and ease for low income families worrying about going broke if they get sick, health care cost will be capped, and insurance companies will not be able to deny applicants due to pre-existing conditions. Accessibility simply means that insurers would have to expand insurance coverage to all Americans. This means eliminating pre-existing conditions that prevented people from gaining insurance coverage, insuring portability across states, mandating the purchase of insurance coverage, standardizing claims to reduce paperwork and providing benefits and cost information to American people allowing them an opportunity to choose a plan that best fit their needs (Shortell, 2009) Affordability has left uninsured and low income families helpless due to high premiums. The public option is an idea that hopes to establish competition that will drive down insurance premium costs between private insurers (Shortell...
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...The healthcare Reform Act of 2010, also known as “Obamacare” is the government’s idea of changing America’s healthcare system. Is this the healthcare reform that America needs, or is it another way for the government to control, and tax the citizens of this great country? This reform is intended to increase access to healthcare by controlling the rise of insurance premiums; increasing employer supplied coverage, as well as expanding Medicaid for lower income families. All of which are in need of revamping in order to better help the American people. There are some issues with Obamacare that are not widely known to everyone, some of these facts are: • In 2014 a fine will be imposed on those who do not have insurance, but are financially able to afford it. This fine is $95 in 2014, $350 in 2015, also beginning in 2016 the fine will be $750 multiplied by the cost of living. • A 10% excise tax on indoor UV tanning services. • Undocumented immigrants are not eligible to receive benefits. • No charge for immunization, preventive care for infants, children and adolescents, and preventive care and screening for women. • Prohibits denying coverage for pre-existing conditions. • (Unknown, 2013) To address a few of these issues that are likely to cause some problems are not having a charge for preventive care for women and children will help a lot of people, but who is ultimately going to pay for these services? This will end up as another tax for the American people to pay because...
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...cost care to anyone who needs it and it is available if one looks for it. Examples include: Shriner’s hospitals, free clinics, and providers who do pro bono work. In case that wasn’t enough, there are also laws in place that ban practices of charging more to people with pre-existing conditions in employer-based health insurance. The 60% of Americans who get their healthcare insurance from their employer may actually be hurt by PPACA. All one needs to do is make the connection that minimum standards for health insurance and broader access to subsidized healthcare will drive taxes up.4 But for those who have a hard time making the connection, the literature supports costs 3 times higher than initially stated by President Obama, and an additional $118 billion through 2023.3 In order to drive home the point of higher costs, look at an example used by Supreme Court Justice Samuel Alito. Justice Alito spoke on the hypothetical typical healthy 27 year old worker who on average consumes less than $900 annually on healthcare services. Under the PPACA that same healthy 27 year old worker will be required to spend more than 5 times that amount for a healthcare policy that gives a low deductable and pediatric services. Two services that a healthy 27 year old normally wouldn’t choose.4 Regulations prevent small businesses to grandfather their health insurance plans, further driving up healthcare spending as small businesses search for new plans.1 When those same small businesses purchase...
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...America “Healthcare reform is not a new concept. In the late 1800s, 11 industrial nations developed social/national insurance.” (Lehman, 2013) The Affordable Healthcare Act has been a big controversy since its conception in 2010. Many people believe it will help, but there are the others who think this is another way for the government to control us. “Despite public perception, it is a fact that the healthcare system in the United States does not deliver the most salubrious care.” (Lehman, 2013) The pros and cons will be discussed in this paper as well as what it means to you and me. One of the biggest helps this bill will give the American people is the ability to have affordable health insurance. The bill lays out the parameters for the insurance companies to follow allowing people to get coverage that is not ungodly expensive. If a person has a preexisting medical condition, such as cancer, will not be turned down for insurance. This is a big help for those who have tried to get insurance and were turned away as a result of prior health issues. The cost of health coverage is no longer based solely on the person, but on the community in which they reside. This allows someone who lives in a poorer part of town to have lower health insurance cost. However, this means people who live in upscale areas will pay more, even if they cannot afford the coverage’s. This may hurt many Americans who have lost their jobs due to the economy. Businesses, big and small, will have to pay a...
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...The Affordable Care Act One of the most important health care moves in legislation after Medicare is the Affordable Care Act. The reason being is that it provides health coverage to anyone regardless of circumstance. The unofficial but widely recognized name for this act is Obama care. Obama care was officially signed into law on March 23, 2010. The aim of the Act is a health care law aimed at improving the health care system of the United States by widening health coverage to more Americans, as well as protecting existing health insurance policy holders. Together with the Health Care and Education Reconciliation Act, it represents the most significant government expansion and regulatory overhaul of the U.S. By 2014, the Affordable Care Act will give millions of Americans access to reliable, high quality medical care, while advancing programs to hold costs in check. Benefits of the law include, insurance subsidies for consumers, transparent exchanges to shop for insurance, new rules protecting consumers from insurance abuses, increased Medicare payments for physicians; and more. The Supreme Court's decision to uphold the Affordable Care Act ensures hard-working, middle class families will get the security they deserve and it also protects every American from the worst insurance company abuses. The way this law was designed was to specifically give states the resources and agility they need to adapt their approach to their distinctive needs. The benefits and protections that...
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...Bajwa Microeconomics May 10, 2010 Health Care Reforms: What They Mean to Me and the United States Can anyone accurately predict the outcome of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010? At this point it is all just speculation. The Federal Government, mainly the Democrats and the Department of Health and Human Services, paints one idealistic picture of the reform. The Federal Government envisions healthcare for all Americans at minimal expense to the consumer. The funding for this would come from a mixture of sources, including taxes on “rich” people, a new tax on expensive insurance, fees on healthcare industries, a tanning tax, and cuts on Medicare spending. Insurance companies are required to be more efficient and the increased competition should also decrease the cost of insurances policies. In theory, this all sounds great and would benefit me, my family, and other Americans with preexisting conditions but the critics are skeptical that all will go as planned. The Republicans and big business are predicting the worst outcomes of the new law. Even the Chief Actuary of the Medicare Program has now made some dire predictions on the actuality of the law, including an increase in spending. Critics predict that businesses may cut employee healthcare and pay the lower cost penalties instead. The cuts to Medicare Part A may put hospitals in debt and threaten access to care for seniors. The system may be...
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...ROMNEYCARE An In-‐Depth Analysis of the Massachusetts Healthcare Reform The American Healthcare System Final Research Report By Sara Mahmood, DDS and Camille Debi 1.0 Introduction In 2006, the state of Massachusetts initiated a health care overhaul by passing a reform law with the central tenet of providing healthcare to all of its residents. Widely popular and objectively successful, the law has been dubbed “Romneycare,” named after then Governor Mitt Romney who signed the legislation into action. The law mandates that nearly every resident of Massachusetts obtain a minimum level of insurance coverage and provides free health insurance for residents earning less than 150% of the federal poverty level. It also mandates employers with more than 10 full-time employees to provide health insurance. Among its many outcomes, the law established an independent public authority with the official title of “the Commonwealth Health Insurance Connector Authority”. However, it is commonly referred to as “the Connector”. The Connector acts as an insurance broker, essentially, offering free, highly subsidized and full-price private insurance plans to residents. The website serves as a portal for Massachusetts residents that allows them to access many of the Connector’s resources, as well as the ability to register online for an insurance policy. Although it has been amended significantly since...
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...Health Care Utilization Paper (Option A) Tammy Zoch Instructor Rebecca Loth Luetke HCS/235: Delivery of Health Care in the U.S. 29 April 2013 Thesis Statement The Health Care Reform is a complex issue and is a hot topic nationwide that has the government, health care facilities and providers, insurance companies, health care employees and Americans talking about the law with its advantages and disadvantage affecting the delivery of health care. Health Care Utilization Paper (Option A) The Patient Protection and Affordable Care Act was signed into law by President Barack Obama on March 23, 2010, along with the Health Care and Education Reconciliation Act of 2010 signed on March 30th. The Act is a product of the health care reform efforts of the Democratic 111th Congress and the Obama administration (Wikipedia, Health Care Reform,2013), putting in place comprehensive reforms that improve access to affordable health coverage for everyone and protect consumers from abusive insurance company practices. The law allows all Americans to make health insurance choices that work for them while guaranteeing access to care for the most vulnerable, and provides new ways to bring down costs and improve quality of care (The White House, 2013), to take effect and be completed in 2014. According to the website www.healthcare.gov, the Health Reform is already making a difference by increasing access to affordable care, making care more affordable, strengthen Medicare, holding insurance...
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...President Barack Obama signed the Patient Protection and Affordable Care Act into effect. This legislation was created to reform the American healthcare system, protect patients, and to provide insurance for more people in our country that could not previously afford or receive it. Since the Affordable Care Act has been passed, it has created uproar in our country. Many people in our Country do not want to be forced to purchase a healthcare plan created by the government, others don’t want to pay the increased taxes that have been enacted to help fund the new healthcare act. However, when it comes down to it, our healthcare system needed some change. The insurance companies had too much power; they could refuse to cover someone based on the most miniscule pre-existing condition. For the U.S. being the wealthiest country in the world, our healthcare was nowhere near the top in the world. There was a huge amount of fraud and waste going on in medical facilities across the nation, which was leading to increased unnecessary costs and overall inefficiency. The Affordable Care Act wont fix all of these problems right away or maybe even years down the road, but at least it is a step in the right direction and is putting methods into action to fix our healthcare system. The following policies are my three favorite policies of the Patient Protection and Affordable Care Act. One of my favorite policies of the Affordable Care Act is that it will prevent insurance companies from refusing you...
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...What the Patient Protection and Affordable Care Act Means for Individuals Melanie Walker COM/156 September 23, 2012 Alicia Cathell Many of us have heard in the news that major changes are coming to health insurance. The new act will affect everyone by changing the way insurance is handled and how we receive our healthcare. The Patient Protection and Affordable Care Act (aka ObamaCare or PPACA) will take effect over the next few years. Some citizens feel threatened by this act because of the negative publicity it has received, feeling that government should not have so much power over the health of the individual..These changes may seem catastrophic to those not aware of what the new insurance reform entails. They are scared of the unknown. Even though many feel that PPACA is unconstitutional with its penalties and reforms, the impact will affect millions of people by allowing them to receive proper healthcare. The Patient Protection and Affordable Care Act was passed to help establish affordable health care for all Americans. According to the article, Will Doctors Work less Under Obamacare, the new act will affect about 32 million Americans who currently cannot afford healthcare and do not qualify for federal assistance. (Garthwaite 2012) The first initiative of this act was passed in October 2011 which affected the dependents listed under a parent's insurance plan. Prior to the passing of the Act dependents could only be covered up to the age of 18 unless a full time...
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