ACA International Implications
The 2010 Affordable Care Act (ACA) seeks to impose new requirements for both employers and individuals in terms of health insurance coverage. However, is the ACA affecting globally mobile workers (those on long-term assignment abroad or in the U.S.), is the ACA altering the Federal Employees Health Benefits Program? The details of the ACA provisions are complex and still evolving. The ACA is altering America's healthcare landscape, affecting insurers, individuals, and employers, including the state and federal governments (Kongstvedt, 2013). Among the notable changes include new marketplaces or public exchanges where persons can buy healthcare coverage and penalties on people who lack health insurance. It is believed that penalties on employers failing to provide coverage will take effect by the end of 2015.
In terms of Federal Employees Health Benefits Program, the Act sets in motion for greatest reform in the employer-offered health benefits in the post-World War period. While the time and speed are unpredictable, studies point to a dramatic restructuring of employer-sponsored health benefits accompanying the passage of the Act. It is argued that when employers understand the many new social and economic incentives embedded in the ACA and the choice of restructuring benefits beyond keeping or dropping them, most will make drastic changes. Estimates point that roughly ten percent of employees today covered by employer-sponsored insurance (ESI) will be forced to shift to subsidized exchange plans. Nevertheless, studies focusing on workers across geographies, industries and employer sizes reveal that ACA is provoking a much bigger response.
Probably, thirty percent of the employers will stop providing ESI in the years after 2015
Among the employers who understand the reform, at least fifty percent will seek alternatives to the traditional ESI
Contrary to the prevailing...
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