Over time, healthcare costs and needs have exponentially increased. Therefore, there are variations in health insurance costs, based on the type of provider public or private. Furthermore, healthcare being one of the basic necessities has progressively experienced various healthcare reforms and challenges. One such revolutionizing reform was the passing of the Patient Protection and Affordable Care Act (PPACA) of 2010, after which it was ambiguous how exactly the employment based plans will be effected, but it requires employers of 50 or more equivalent employees to provide comprehensive and somewhat affordable coverage (Karuppan, 2014). Therefore, the positive as well as the negative impact of this healthcare reform, on both the employer and its employees is further analyzed.
Advantages of Switching to Healthcare Exchange
For Employees
According to Sperling (2012), “PPACA is perhaps one of the most significant aspects of social legislation since the enactment of Medicare in 1965”(p.18). Mainly because after the passing of this Act, both employees as well employers are required to pay financial penalties if they fail to abide by it (Sperling, 2012). One of the biggest advantages of switching to healthcare exchange is that the employees …show more content…
For instance, employers are investing more towards other healthcare initiatives such as wellness centers, or increasing other benefits such vacation package, which are popular strategies especially among the youth (Karuppan, 2014). Also, since the employees have the ability to choose their own healthcare plan through the exchange, they usually tend to lean towards the less expensive plans, which also benefits the employers in terms of subsidizing for a lower premium value (Abraham, Royalty, & DeLeire,
Advantages of Switching to Healthcare Exchange
For Employees
According to Sperling (2012), “PPACA is perhaps one of the most significant aspects of social legislation since the enactment of Medicare in 1965”(p.18). Mainly because after the passing of this Act, both employees as well employers are required to pay financial penalties if they fail to abide by it (Sperling, 2012). One of the biggest advantages of switching to healthcare exchange is that the employees …show more content…
For instance, employers are investing more towards other healthcare initiatives such as wellness centers, or increasing other benefits such vacation package, which are popular strategies especially among the youth (Karuppan, 2014). Also, since the employees have the ability to choose their own healthcare plan through the exchange, they usually tend to lean towards the less expensive plans, which also benefits the employers in terms of subsidizing for a lower premium value (Abraham, Royalty, & DeLeire,