The Affordable Care Act - Case Study Example

The Affordable Care Act The Affordable Care Act provides the employees with better health security. This is done by putting in action the comprehensive health reforms of insurance. The insurance reforms will lower health care costs, expand coverage, hold insurance companies responsible, enhance the quality of care and guarantee more choices to the people in that particular country. The Affordable Care Act has pros and cons impacts on a small business that has part-time employees. The impacts may affect the company directly and also the employees themselves.

On the company side, the Act of Affordable Care help the company attract many employees on their farms. 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 companies that has more than 50 full-time employees but not those with less than that. As for this company, it is for the best of it to go by the act and pay the health insurance.

Although many may argue that the Affordable Care Act is in fever of employing part-time workers, it is of the greatest importance of the company. Due to this mandate, many small businesses have come to clarify contracts of the part-time employees. This is done by adding some more hours so as to reflect the 30-hour threshold as the full-time hours (Faguet, 93). According to this research, the only good recommendation I could give to is to adopt the Affordable Care Act as it has more pros than demerits.

The Act allows the company to have more employees and thus more production. More so, if a company does not go by the Act, there are many consequences that as a company should avoid. The Act is good to the company as an employee makes sure that they are not absent and mostly, they have the health insurance to cover their medical expenses. Work Cited Burkhauser, R. V., & Lyons, S. (2011). The importance of the meaning and measurement of "affordable" in the Affordable Care Act. Cambridge, Mass.

: National Bureau of Economic Research. Faguet, G. B. (2013). The Affordable Care Act: a missed opportunity, a better way forward. New York: Algora Pub..