The re-election of President Obama means that ObamaCare will continue to roll out as planned. All businesses need to be aware of what impact the Affordable Care Act will have on their business. There is considerable confusion about the plan at this time. Students in Business Administration programs will be closely watching and analyzing the impacts as they prepare for their careers.
The purpose of the health care plan is to regulate insurance companies so that citizens can better manage their health care. It can be difficult to sort out what this will really mean as an employer. A Business Administration Degree can provide you with the analytical skills to navigate what looks to be a complicated process.
Here are five main points that businesses need to know about ObamaCare.
- Small businesses with 50 or more full time employees must provide health care coverage to employees. This health care coverage must be at an affordable cost and provide certain preventative services with no co-pay or deductible. The new plans must also have the option to cover dependent children until they are 26 years old. There can be no annual or lifetime limits.
- All health care plans will need to meet minimum essential coverage. This coverage is not yet fully defined. Employees with a Business Administration degree will be in a good position to fill roles provided by the act. Employers will need to examine plans to make sure they supply the required benefits and are not too cost heavy for the employee. ObamaCare will not replace private health insurance, Medicare or Medicaid. The Affordable Care Act is designed to work with insurance companies to come up with options. Businesses will need to come up with a plan that works within all of these regulations. There is no true government plan.
- Insurance carriers have already been required to make changes and there are more to come. According to the Affordable Care Act, insurance companies who do not disperse 80% of the premiums on the plan must refund the difference to the employer. For example if your company paid $10,000 in premiums and the insurance company paid out $7,000 in benefits, they will need to send the employer a $1,000 refund.
- The purpose of the Affordable Health Care Act was not to burden businesses with more work, however, there may well be work involved in making sure your business is in compliance. Human Resource personnel with a Business Administration Degree will be in a good position to help keep the paperwork under control as well as keep the company in compliance.
- Starting in 2014 employees will be able to purchase health care coverage through an exchange. If a company has less than 50 employees there will be no penalties for not offering coverage through the company. Those employees will be able to get insurance through the exchange from a number of providers.
Changes in the way that ObamaCare is being developed will require that businesses keep a close eye on the regulations to make sure that they are in compliance. Having personnel in your organization with a Business Administration Degree from Minnesota School of Business will be a huge help in transitioning smoothly.