Health Insurance : The Patient Protection And Affordable Care Act ( Aca )

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b. Health Insurance
In the modern United States, the starting point of any practical discussion about health insurance begins with the Patient Protection and Affordable Care Act (ACA). The ACA has a significant amount of influence over employers and their individual employees, and therefore must be discussed before any recommendations may be made. There are three major aspects of the ACA that are relevant to our client and that ought to be discussed and considered. These aspects include the individual mandate, the employer mandate, and the exchanges.
First, the individual mandate requires individuals to purchase health insurance or pay a penalty tax. There are exemptions but these do not apply to our clients or their employees, as the facts have been presented. The practical effect of this for our clients, is that each owner and employee must have health insurance. This leaves each individual with two options, purchases his or her own insurance or the company buys a health insurance plan for the employees. Going without health insurance is hardly an option given the harsh penalties imposed under the ACA. At this point in time, the penalty is the greater of (1) $695 per individual and $347.50 per child (up to a maximum of $2,085 per family) or (2) 2.5 percent of the family’s income.
Second, the employer mandate is a requirement that all businesses with over 50 full time employees provide healthcare for their employees or face a tax penalty. This penalty is officially
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