Benefits Of The Patient Protection And Affordable Care Act ( Ppaca )

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As a mid-sized organization of 100-250 employees the goal is to provide the widest array of employee benefits possible, without breaking the bank. The company wants to offer a benefit package to support the needs of its employees and serve to motivate, when taken as part of the total rewards package. That said, there are some benefits in which the company is required to offer and need will to consider their cost and benefit first, before adding in other non-mandated benefits. The company’s obligations are explored below in more detail. Health Insurance With the advent of the Patient Protection and Affordable Care Act (PPACA) most Americans are required to have health insurance coverage, whether independently, via exchanges, through…show more content…
In addition, offering a retirement plan is a way to help our employees plan for their financial future. It is suggested that the organization consider a defined contribution plan. Defined contribution plans set aside a pre-determined amount into a retirement vehicle, such as a 401k. They are easier to manage, have less volatility and have lower costs than defined benefit plans. In addition, defined contribution plans, such as a 401k plan allow employees to make contributions as well. A profit-sharing plan would serve as the basis for the employer contributions of the 401k plan, this would allow the employer to tie its contributions to a percentage of profits, thus minimizing our financial risk for this expense (Martocchio, 2014). Employer sponsored disability insurance Disability insurance is a discretionary benefit as there is no mandate for it however, it is fairly prevalent for employers to offer it. Disability insurance provides income replacement if an employee is unable to work due to illness or injury. According to one survey over 80% of employers offer long-term disability insurance and 74% offer short-term disability (SHRM, 2015). It is suggested that the company look to an insurance company to provide this benefit, because there are less than 250 employees in the company, the idea of self-funding this benefit is not realistic. There is not large enough participant pool to determine probability and the appetite for risk is minimal, therefore, even
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