Considerations For Employer Based Health Insurance Essay

1235 Words Jul 4th, 2015 5 Pages
Module 5 – Considerations for Employer-Based Health Insurance Employer based health coverage has been part of the compensation package for many individuals for years. With more than 157 million people under the age of 65 enrolled in a program, it is easy to see how employer sponsored plans play an important part of the employee/worker relationship (Merlis, n.d.). The main determinate in establishing an employer sponsored health plan is the financial outlay required. Sure the federal government provides financial assistance to employers and employees by way of tax benefits, but those benefits are not enough to cover the entire costs. Although in recent years the year over year increase in healthcare costs have declined, the costs are still higher than most industrialized countries; the United States spends twice as much per capita (Bergner and Thompson, 2013). These high costs impact the bottom line of the company and for companies to be competitive both in the United States and abroad, finding a way to reduce the costs is imperative. With the passing of the Accountable Care Act (ACA) the health benefits package is sure to change, but how much change will come, is still unknown given the ACA is in the early years of full implementation. This paper will discuss the advantages and disadvantages of group insurance post the ACA implementation. The paper will also offer information regarding the future of group insurance in an employer-based setting; focus will…

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