The Affordable Care Act ( Aca )

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Recently, the Affordable Care Act (ACA) celebrated six years since the law’s passage. During that time, there have been many debates and slow changes to the United States healthcare system. One area that has been debated is in regards to employer-based health insurance along with the advantages and disadvantages in providing this type of coverage. Since there is more information about the expansion of health insurance options and how the exchange sponsored insurance plans are functioning, the discussion on if employer-based health insurance is beneficial or detrimental will be examined.

The debate over the future of how Americans obtain their health insurance has been a hot topic since the passage of the ACA in 2010. “The
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Opponents of the ACA cite that the law will end employer-based health insurance and force everyone into a universal health plan.

While part of this supposition is incorrect, there is some truth behind the notion. Larger companies can negotiate better rates for their employees because of the volume of coverage, compared to small or medium businesses (Urbel, 2013). Insurance companies are more apt to give a large company lower premiums because of the volume that is needed to cover their employees, as well as the lower actuarial risk of containing costs for serious illnesses (Ubel, 2013). A University of Michigan study found that between 2000-2011, small and medium businesses have been decreasing employer-based health insurance coverage, while larger companies (over one hundred employees) have consistently provided coverage (Ubel, 2013). This trend started before the passage of the ACA and supports that small and medium businesses were having difficulty in providing this benefit to their employees consistently.

Another issue that Ubel’s article discusses is how economic factors influence employer’s decisions in providing benefits to employees. If an employee is earning a higher salary, the individual may decide to forgo some of their pay to receive benefits, like health insurance (Ubel, 2013). Conversely, a low-wage earner does not have the financial latitude to sacrifice some of their wages to receive health insurance
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