Patient Protection and Accountable Care Act (Essay Sample)

Patient Protection and Accountable Care Act Student’s Name: Professor’s Name: Institution: Date Introduction The Patient Protection and Affordable Care Act is a law enacted and passed in US, it is commonly referred as the Affordable Care Act, sometimes termed as Obamacare since this idea came up and sharpened by the President Barack Obama, therefore, it is a United States federal statute enacted on March 23, 2010 (CCH Incorporated., & Wolters Kluwer 2010). With unemployment a major concern for many people, the Patient Protection and Affordable Care Act will cause it more costly for workers to employ low-skill workers. Insurance companies with 50 or more workers will be required to give a good health insurance package (CCH Incorporated., & Wolters Kluwer 2010). Mostly, if they fail to pay an annual or monthly penalty of certain amount of cash is allocated for each full-time worker. This penalty increases significantly the charge of employing a low-skill employer. Franchisors and franchisees, who possess groups of small and big ventures, such as igloos, restaurants, companies, and service, will be at a comparative challenge relative to other trades with fewer areas and fewer workers. This will happens when a franchisor or franchisee employs 30 or more persons at several places and realizes itself competing against self-governing establishments with fewer than 30. Insurance companies that have customarily offered the largest opportunities to entry-level employees especially on hospitality and leisure will be predominantly hashed by the new law in the country. Many of these employers do not now supply all of their employees’ health insurance, and have large proportions of entry-level employees in mind that who’s cost of hiring will rise simultaneously. Effects of Patient Protection and Accountable Care Act A new health law will have principally negative impacts on the collection of small companies that create the insurance industry. Many insurance companies have total employment beyond the 49-worker ceiling yet they compete against other companies whose employment levels do not require them to provide health insurance. Basically, this law will lead in fewer well-paying jobs in the company as stakeholders progressively automate or alter to part-time job (CCH Incorporated., & Wolters Kluwer 2010). With classic and skill jobs, employers can provide the required benefits and remunerate for them by regulating wages. It should be noted that low-wage jobs in some areas, such as the retail sectors, give little room for cuts in wages. So industries will have an incentive to become more automated and intensive machines hence hire fewer workers. For instance, some retailers are already changing cashiers with auto-scanning machines. Due to this, businesses must absorb temporary workers in the insurance sectors, if not so they have to pay penalties depending on the number of employees purchasing health insurance at the state exchange in the insurance pool. Insurance companies can be organized in many ways. In some cases the parent company, will own and operate sites while franchising others. In other cases, the company will own a single location. In a third set of cases, a company will own many locations, termed to as a multi-unit franchisee. More than half of all insurance establishments are owned by multi-unit franchisees. In the cases where the franchisor and the franchisee own and maintain several locations, these industries are cared as one company for tax and health care reasons. The new health care law would put many franchise ventures at a drawback relative to non-franchise opponents by driving up their operating expenses (CCH Incorporated., & Wolters Kluwer 2010). . Many of these companies would be subject to the health care penalty if they do not offer health insurance. Therefore, the multi-unit franchisees will have a mai...