Health Care Bargaining PPACA
Health Care Bargaining and PPACA in GMFC
Introduction
Companies with a huge number of employees must comply with the federal regulations relating to the Patient Protection Affordable Care Act (PPACA). The PPACA is a massive program that purports to cover each and every aspect of health care and education in the United States (Sade, 2012). Effects of PPACA on the work industry, both to employers and employees, can bring rise to increased costs, frustrations, and costs that create a staggering situation like what GMFC Company is currently experiencing. Being a large multidivisional corporation with over 50,000 employees, it becomes very crucial for the GMFC Company to make critical decisions regarding health care coverage for its employees. …show more content…
The option of the business endorsing the plan as stipulated in the PPACA is not welcoming to it since it poses a threat of increased costs due to the increase of the health care cost of inflation. More so, Local 834 checks on the GMFC Company not to neglect the plan because it might be vulnerable to the skyrocketing tax. Should GMFC decides to drop the health care coverage and pay the lawful penalties instead, its employees will be forced to purchase insurance from virtual exchanges companies, and as a result, the union would demand large salary increment to offset the reduction in the contributions from the company. Apparently, it is clear that the company is in a serious dilemma since the available alternatives touch serious labour relations problems that are associated with the rapid, unexpected …show more content…
Cadillac tax is a forty percent tax on firms that provide high-cost health benefits to the employees (Kapp, n.d.). Therefore, the company needs to devote a significant time to manage and maintain compliance with the law. Another direct implication to the GMFC Company is that it will have to dedicate more human resources and even require complex IT infrastructures to facilitate a smooth running of the new system plan. This process, therefore, means an increase in the cost to the company. On the other hand, by GMFC endorsing the PPACA, it will have a wider impact on the nation. For instance, there will be a creation of additional workload to the department of insurance in the health care sector as a result of increased health care requirements. Since PPACA imposes various taxes and penalties, GMFC will be adversely affected should it not comply fully with the plan.
GMFC requirements by PPACA
Under PPACA, employers are not directly mandated to offer health coverage to their workers. However, this measure contains a powerful incentive for many employers to do so. Large employers such as GMFC face a financial penalty if any of their full-time employees obtain a premium credit through an exchange. Large companies are required to automatically enroll their workers in the company’s health scheme, although, the employees are at liberty to opt out
Introduction
Companies with a huge number of employees must comply with the federal regulations relating to the Patient Protection Affordable Care Act (PPACA). The PPACA is a massive program that purports to cover each and every aspect of health care and education in the United States (Sade, 2012). Effects of PPACA on the work industry, both to employers and employees, can bring rise to increased costs, frustrations, and costs that create a staggering situation like what GMFC Company is currently experiencing. Being a large multidivisional corporation with over 50,000 employees, it becomes very crucial for the GMFC Company to make critical decisions regarding health care coverage for its employees. …show more content…
The option of the business endorsing the plan as stipulated in the PPACA is not welcoming to it since it poses a threat of increased costs due to the increase of the health care cost of inflation. More so, Local 834 checks on the GMFC Company not to neglect the plan because it might be vulnerable to the skyrocketing tax. Should GMFC decides to drop the health care coverage and pay the lawful penalties instead, its employees will be forced to purchase insurance from virtual exchanges companies, and as a result, the union would demand large salary increment to offset the reduction in the contributions from the company. Apparently, it is clear that the company is in a serious dilemma since the available alternatives touch serious labour relations problems that are associated with the rapid, unexpected …show more content…
Cadillac tax is a forty percent tax on firms that provide high-cost health benefits to the employees (Kapp, n.d.). Therefore, the company needs to devote a significant time to manage and maintain compliance with the law. Another direct implication to the GMFC Company is that it will have to dedicate more human resources and even require complex IT infrastructures to facilitate a smooth running of the new system plan. This process, therefore, means an increase in the cost to the company. On the other hand, by GMFC endorsing the PPACA, it will have a wider impact on the nation. For instance, there will be a creation of additional workload to the department of insurance in the health care sector as a result of increased health care requirements. Since PPACA imposes various taxes and penalties, GMFC will be adversely affected should it not comply fully with the plan.
GMFC requirements by PPACA
Under PPACA, employers are not directly mandated to offer health coverage to their workers. However, this measure contains a powerful incentive for many employers to do so. Large employers such as GMFC face a financial penalty if any of their full-time employees obtain a premium credit through an exchange. Large companies are required to automatically enroll their workers in the company’s health scheme, although, the employees are at liberty to opt out