Assignment 4: Health Insurance and the Affordable Care ActDue Week 8 and worth 150 points
Suppose you have been tasked with purchasing health insurance for your organization that has fifty full-time employees.
Use the Internet or Strayer databases to research different types of health insurance.
Write a 2-3 page paper in which you:
- Suggest one (1) plan that you would use to purchase health insurance for your organization. Determine the extent to which employee lifestyle choices and health economics would factor in to your chosen plan. Provide a rationale for your response.
- Analyze the implication of the Affordable Care Act on your decision to purchase insurance. Debate two (2) advantages and two (2) disadvantages of purchasing health insurance for your employees, as opposed to having your employees receive governmental insurance.
- Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
- This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow SWS or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Analyze the impact of healthcare financing and health insurance on healthcare access, quality, and cost.
- Analyze the influence of health policy and health reform on healthcare access, quality, and cost in the U.S.
- Use technology and information resources to research issues in healthcare policy, law, and ethics.
- Write clearly and concisely about healthcare policy and law using proper writing mechanics.
Expert Solution Preview
Introduction:
The purchase of health insurance for an organization with fifty full-time employees involves analyzing different types of health insurance plans and how employee lifestyle choices and health economics would factor in to the chosen plan. In addition, the implication of the Affordable Care Act on the decision to purchase insurance needs to be analyzed along with the advantages and disadvantages of purchasing health insurance for employees compared to having them receive governmental insurance.
1. Suggest one (1) plan that you would use to purchase health insurance for your organization. Determine the extent to which employee lifestyle choices and health economics would factor in to your chosen plan. Provide a rationale for your response.
I would suggest a high deductible health plan (HDHP) for purchasing health insurance for my organization. Employee lifestyle choices and health economics would factor into the chosen plan as HDHPs have lower premiums but higher deductibles, which encourage employees to make informed choices about their health and promote cost-saving measures. HDHPs also come with a health savings account (HSA) that can be used to pay for medical expenses and provide tax benefits. Employees can contribute to the HSA pre-tax, which reduces their taxable income and lowers their tax liabilities. Additionally, any unused funds in the HSA can roll over to the following year. Therefore, an HDHP would be a cost-effective and efficient plan for my organization.
2. Analyze the implication of the Affordable Care Act on your decision to purchase insurance. Debate two (2) advantages and two (2) disadvantages of purchasing health insurance for your employees, as opposed to having your employees receive governmental insurance.
The Affordable Care Act (ACA) has several implications on the decision to purchase health insurance. One advantage is that ACA establishes minimum coverage standards for insurance plans, which ensures that employees have access to essential health benefits. Another advantage is that ACA provides tax credits to small businesses that offer health insurance to their employees. The tax credits can be as much as 50% of the employer’s contribution to employee premiums. However, there are also some disadvantages of purchasing health insurance for employees. One disadvantage is that health insurance premiums can be expensive, which may strain a small business’s budget. Another disadvantage is that employers are legally required to provide health insurance to their employees if they have 50 or more full-time employees. This legal requirement may add to the administrative and financial burden of a small business. Conversely, governmental insurance has the advantage of lower cost for both the employer and employee. However, it may not provide the same level of coverage as private insurance and the lack of flexibility in choosing plans and providers may be another disadvantage.
References:
1. Galewitz, P. (2015, December 28). 10 key Obamacare rules for employers in 2016. Kaiser Health News. https://khn.org/news/10-key-obamacare-rules-for-employers-in-2016/
2. Internal Revenue Service. (2021). Small Business Health Care Tax Credit. https://www.irs.gov/affordable-care-act/employers/small-business-health-care-tax-credit-and-the-shop-marketplace