The Effects of the Affordable Care Act

The Affordable Care Act, which goes into effect January 1, 2014, has many people puzzled about what effects it will have on their lives and businesses. Al Hombroek shared his insights with his fellow Rotarians at the noon meeting of the Rotary Club of Lawrenceville on February 25. He defined key terms of the Act, such as minimal essential coverage, full-time equivalent employees, subsidized coverage, and inadequate coverage penalty, and passed out a flow chart that clarified the process. He focused on the possible effects the Act will have on decisions about hiring and about what coverage to offer employees (if any). He speculated that some companies may drop insurance benefits or develop some ways to get around paying the inadequate coverage penalty. In short, the Act raises many questions and will necessitate some basic changes in the way employers handle benefits.

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