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The potential employees will have the need to apply for a job since she/he knows that there is health assurance in that company. If not, there will be no interest in that company jobs. It is evident that the existing manpower will be retained in the company as they start having the benefits of the health care insurance. The other thing that the company will benefit from this Act is that there will be an increase in productivity. As the number of employees increase, productivity level increases since there is enough manpower in the company. This Act will reduce the number of absenteeism. As the employees are aware of the insurance cover, there will be less numbers I the absentees list (Burkhauser, 23).
Some employers will tend to consider the act of changing their already in use system of insurance and employ only part time employee as live a long with the full-time employees. This is discouraging factor as it will cost a lot to train them and also the administration of the business. Even if the part-time employees don’t change the existing insurance system, they raise marginal cost (Burkhauser, 73).
In the Affordable Care Act, there is the employers’ mandate. Employers who have more than 50 employees, who are also full-time and are not having health insurance, should have the employer’s mandate which is their penalty. This penalty is meant for those employers whose intensions are to change their current system of health insurance. The employer mandate is to ensure that the existing style of insurance doesn’t change because of the new Act. As a result of the mandate, some analysts have come up with a suggestion that an ultimate version of pay or play to be introduced. This version is to tax these small businesses that do not give the health insurance. This is to be done by a percentage of their payroll (Faguet, 83).
This penalty is meant for those businesses that
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