Thursday, December 26, 2019

The Implementation Of The Patient Protection And...

The implementation of the Patient Protection and Affordable Care Act introduced the Employer Shared Responsibility Provisions that requires employers to provide health insurance to full-time employees, or pay a tax penalty. There are dire predictions that under â€Å"play or pay†, large employers would try to eliminate health benefits or cut workers’ hours to get under the cap requiring health benefits. Employers would achieve this by re-designating full-time employees as independent contractors. It is highly unlikely that large employers will try to reduce health insurance costs by converting employees to contractors, as misclassifying employees as independent contractors can incur major penalties. The IRS has very specific guidelines regarding who can be considered an independent contractor. The IRS has also been cracking down on the misclassification of independent contractors. There are many examples of large corporations choosing to reduce or transition employee benefits, primarily in the form of terminating or creating alternatives for retiree health benefits or eliminating benefits for part-time employees. In recent years, Walmart, Target, Home Depot, Trader Joe’s, along with many other companies have eliminated health benefits for part-time employees. Other companies such as General Motors, Unilever, Sprint-Nextel, and Time Warner have either shifted their retiree healthcare plans into private market insurance exchanges or eliminated coverage for Medicare eligibleShow MoreRelatedPatient Protection, Affordable Care Act, and the Uninsured702 Words   |  3 PagesPatient Protection and Affordable Care Act and the Uninsured: One of the major social problems in the United States is the increasing number of uninsured people who are among the vulnerable populations in the America. 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