Assignment 3: The Patient Protection And Affordable Care Act

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Christopher Mburu Dr. Gary Hanney Week 5 Assignment 3: The Patient Protection and Affordable Care Act MHC6304 July 30, 2013 Health Insurance is a family concern; Under The Patient Protection Act and The Affordable Care Acts it allows family dependents to stay on their parents health insurance until they are 26 years old. “Some health plans are not required to extend benefits to young adults if they can get coverage at work; this exception goes away in January 2014” (ObamaCare Facts). The ACA helps to provide affordable healthcare insurance by offering mandates, subsidies, and tax credits to employers and individuals to increase the coverage rate. Low-income individuals and families may qualify for cheaper plans set up government. “Obamacare…show more content…
Under the regulation of the new health reform of the ACA, it does not require employers to have the option to give health insurance benefits to its employees. Although this is true, employers are still responsible to have insurance under certain circumstances. “Small employers with fewer than 50 employees are exempt from any penalties. Beginning January 1, 2014, large employers can be assessed a free rider penalty if their workers receive premium subsidies through the exchanges. In addition, an employer with more than 200 employees who offers at least one health plan must automatically enroll employees into one of the plans offered, though employees may opt out.” (HI101 2013 ). A free rider penalty is a tax penalty for Americans who are wealthy enough to purchase health insurance coverage for themselves but choose not to; they are free riding off everyone else when it comes time to utilize health care services. According to the Supreme Court there are roughly 2% of American citizens who can afford but choose not to purchase coverage; these individuals will be hit with a $1,000 hidden tax fee. It is a fact that without this free rider penalty most health insurance plans premiums would increase making coverage more expensive for…show more content…
These employees must also contribute at least 50% of the premium amount for a health insurance Exchange plan. When the ACA was first signed into law back in 2010 it set up its tax credits to cover up to 35% of eligible businesses contributions towards health insurance coverage for its employees; this also included a 25% contribution for nonprofit employer contributions. “One of the provisions in the ACA changes things in 2014; for-profit employers can receive a maximum tax credit of 50 percent of the employer's contribution to premiums, and 35 percent of premium contributions for nonprofits employers. Employers with 10 or fewer full time employees with an average annual taxable wage of $25,000 are eligible for the full tax credit. Beginning in 2014, the employee average annual wage limit of $50,000 will be indexed by the cost of living” (HI101

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