4 Reasons Why Employers May Choose Private Healthcare Exchanges
The ball is rolling, and things are changing in the healthcare and health insurance industries in the United States. The Patient Protection and Affordable Care Act, signed into law in March 2010 by President Barack Obama, set in motion an overhaul of the U.S. healthcare system that, despite the best efforts of the GOP, is unlikely to be reversed. The law of the land has changed, and everyone from individuals to insurers to corporations is changing with it.
Somewhat drowned out in the current conversation are employers. Under the ACA, employers with 50 or more full-time equivalent employees — which is determined by taking the number of full-time employees plus the combined number of part-time employee hours divided by 30 — are required to provide health insurance for their full-time employees or pay a tax penalty.
There are a lot of nuances to this employer mandate, but the big picture is pretty clear: Many employers are going to have to change the way they approach health insurance. Agitating the issue is the fact that health insurance costs have skyrocketed in recent years, making the traditional system of defined benefit employer-sponsored healthcare plans financially infeasible for many companies.