Aca Case Study Essay

1070 Words Jan 31st, 2015 5 Pages
Introduction:
ACA (Affordable Care Act) was signed by President Obama on March 23rd 2010 to reform the US medical system. ACA changes the non-group insurance markets in the US and each individual should have health insurance which helps significantly to develop the markets of the public insurance and support the private insurance coverages which leads to rise in the revenue from the new taxes and reorganizes the Medicare health insurance plan.
According to Gurbers assumption of funding ACA is mainly based on the “Three legged Stool” approach followed to fix the Non employer insurance in the United states and which helps in the increasing the market of the health insurance in the country. The reforms included based on the three legged
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6) 21% of finance can be obtained from the late payments of the installments by individuals, employers and taxes on the high wage employees and helps in reducing the employer spending on insurance.
Major risks:
The major risks which impacts the ACA funding are
1) Population Movement
2) Budget Implication
3) Health care costs
4) Premium Impacts
Population Movement:
According to the CBO estimates employee sponsored insurance has limited deterioration. There are instances in some firms with limited set of employees are not price sensitive about their decisions regarding the insurance offers to the employees. ACA does not provide any better plan to the 250% of the poverty line. Because of this Most employees didn’t get any better insurance deals outside the employer. According to the GMSIM, Synthetic firms which are similar to the actual firms get the data from the BLS (U.S. Bureau of labor Statistics) provides the earnings of the co-workers working in same type of firms in different locations in the country. By this synthetic firm we can compare the firms less than 100 employees to assess the low income of the workers. ESI enrollment became compulsory so that every uninsured individual should enroll.
ACA free rider penalty to the firms with $2000-$3000 because if the employees get discounts on the health insurance exchange. ACA

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