The Affordable Care Act ( Aca )

1142 Words Nov 1st, 2014 5 Pages
GMFC Healthcare Bargaining
The Affordable Care Act (ACA), also known as Obamacare, was a major overhaul to the healthcare system, affecting both employers and employees. The ACA, along with rising healthcare costs, means employers have had to make changes in their healthcare plans and as a result, employees are seeing the affects, good or bad. As Fitzgerald (2014) points out, as the ACA gets closer to full implementation, more organizations will begin backing away from providing health care coverage. Part of the problem that organizations are facing in the future is the so-called Cadillac tax. As explained by healthaffairs.org (2013), the Cadillac tax is an excise tax on high-cost insurance plans and will mostly be paid for by the
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With the additional costs incurred to make the required changes, as well as the Cadillac tax they will be facing, GMFC is facing tough choices. As Reynolds and Myers (2013) point out, many companies with generous plans, such as GMFC, are having to reduce their employees’ benefits because of additional costs to the company. Reynolds and Myer (2013) also point out a survey done of Fortune 1000 companies that showed 60% of them have said the future excise tax is already having a major influence on benefits decisions for 2015. Most of this is due to the 2018 implementation of the Cadillac tax. The changes to the benefits are to relieve future health plan increases as well as the future excise tax (Reynolds & Myer, 2013). By making some changes now, companies will not have to make such drastic changes at the last minute, in 2018.
Solution(s) for GMFC
There are various solutions companies are using to offset the future costs due to the ACA and Cadillac tax. While every employer should seek to take care of their employees, they are also in the business to profit; with a large decrease in profits due to increased health, most organizations will need to make changes to continue to stay competitive. These changes are already happening today in many organizations. Presented here are a few options that GMFC can take.
Dropping Coverage
One option would be to drop coverage all together and just pay the penalties imposed each year, which is on

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