Question

In an essay format, answer the following question with supporting resources: What is the Accountable Care Act requirement for business insurance coverage for employees? Given the demands of self-insured health insurance plans, under what conditions would you expect a small employer to become self-insured?

Answer 1

Affordable care act is also known as Obama care was enacted on March 23, 2010. The law has two pieces of legislation :-

Patient protection

Affordable care act

The Affordable Care Act employer mandate generally applies to employers with 50 or more full-time employees, according to the IRS. This means that in most cases, these businesses must offer health insurance to their employees, or make an employer shared responsibility payment to the IRS.

The Affordable Care Act (sometimes called the health care law, or ACA) established the Small Business Health Options Program (SHOP) for small employers (generally those with 1–50 full-time and full-time equivalent employees (FTEs)) who want to provide health and dental coverage to their employees.

Certain employers can enroll in SHOP through private insurance companies, or with the help of a SHOP-registered agent or broker. SHOP plans are generally the only way to qualify for the Small Business Health Care Tax Credit to lower premium costs

Current regulatory financial requirements for an organization desiring entry into self-insurance are: Three calendar years in business in a legally authorized business form. Three years of certified, independently audited financial statements. Acceptable credit rating for three full calendar years prior to application.