September 27, 2013
BA 206 Fall A1 – Microeconomics
1.1. Summarize and discuss the proposed benefits under the PPACA (i.e. “Obamacare”). How will the federal government pay for any health insurance subsidies under the PPACA?
The Patient Protection and Affordable Care Act (PPACA) provides essential health benefits for people seeking health care treatments and or services based on each state. According to Giddings and Waidmann (2012), the health insurance issuer must automatically provide the summary of benefits and coverage (“SBC”) to a group health plan for health coverage. In 2012, Patterson, Fleischmann, and Mugel concluded, SBC Regulations require group health plans and health insurers to provide each participant or enrollee with a written summary that accurately describes the plan’s benefits and coverage and that complies with the detailed requirements stated in the regulations. The PPACA authorizes states to offer a basic health plan in lieu of exchange coverage to certain moderate-income individuals but these basic health plans, too, must cover the essential health benefits (Touschner and Corlette, n.d.). This new law which was effective October 1, 2013 requires individuals to be covered but does not require their employers to offer them the health insurance packages. However, Fallon (n.d.) states that large employers (50 or more FTE’s), the law imposes a nondeductible penalty if any of their full-time employees quality for and receive federal subsidies.
1.2. Discuss any potential negative unintended consequences under the PPACA. How might small businesses and individuals respond to the mandates under the PPACA?
Personally I think that there can be many negative consequences under the PPACA. This new law will affect many individuals that will have to pay for other peoples penalties. People will have to make trade-offs according to what is more important to them especially if they cannot afford the insurance.
References: Fallon, N. (n.d.). PPACA: Breaking Down the Insurance Requirements in Health Care Reform: LarsonAllen LLP. LarsonAllen LLP: CPAs, Consultants & Advisors. Retrieved October 3, 2013, from http://www.larsonallen.com/EFFECT/Breaking_Down_the_Insurance_Requirements_in_Health_Care_Reform.aspx Giddings, T., & Waidmann, B. A. (2012, February 14). PPACA summary of benefits and coverage.PwC: Audit and assurance, consulting and tax services. Retrieved September 30, 2013, from http://www.pwc.com/us/en/hr-management/newsletters/hrs-insights/ppaca-summary-benefits-coverage.jhtml Jaensch, C. (n.d.). How can I live and work in the United States?. JAENSCH IMMIGRATION Law Firm!. Retrieved October 3, 2013, from http://www.visaamerica.com/our_services_overview/ McConnell, C. R., Brue, S. L., & Flynn, S. M. (2011). Economics (19th ed.). New York: McGraw-Hill Higher Education. Patterson, R. W., Fleischmann, J., & Mugel. (2012, July). The "Summary of Benefits and Coverage" Requirement Under PPACA. American Bar Association. Retrieved October 3, 2013, from http://www.americanbar.org/newsletter/publications/aba_health_esource_home/aba_health_law_esource_0712_patterson.html Touschner, J., & Corlette, S. (n.d.). Essential Health Benefits.American Cancer Society Cancer Action Network. Retrieved September 30, 2013, from www.acscan.org/pdf/healthcare/implementation/background/EssentialHealthBenefits.pdf Types of Nonimmigrant (Temporary) Visas: Who Qualifies? | Nolo.com. (n.d.). Lawyers, Legal Forms, Law Books & Software, Free Legal Information - Nolo.com. Retrieved October 3, 2013, from http://www.nolo.com/legal-encyclopedia/qualify-nonimmigrant-temporary-visa-29727.html Typical Fees and Costs of an Immigration Lawyer in NYC. (n.d.). Bretz & Coven, LLP.. Retrieved October 3, 2013, from http://www.bretzlaw.com/aop/us-immigration-law/costs-fees/#top