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Workers can opt out and as an alternative obtain coverage from their state's insurance exchange. The PPACA standards will considerably affect industries that employ part-time, provisional, seasonal and float-pool workers at length (Clarke, Keckley & Kraus, 2012). A hospital will have to look at whether hiring part time employees and float pool workers will still be beneficial for them or if they will need to go to only having full time employees.
The PPACA includes a grandfather clause for employer plans that are already in place as of the date the act goes into effect. With the exemption of some insurance reforms employer plans that already exist on the date of enactment will not have to be altered to meet the terms with other parts of the PPACA. This will be a vital issue for businesses as they consider the effects and costs of other requirements, because loss of grandfather rank could force employers to widen their benefits plans and potentially sustain higher health insurance premiums (Clarke, Keckley & Kraus, 2012). If a hospital were to loose their grandfather status it could potentially be very costly to them since they are likely to have quite a few employees working for them.
Several provision of PPACA provide a bigger incentive for employers to get rid of or reduce retiree coverage. The retiree drug funding intended to support employers to keep prescription benefits for older retirees will now be taxable to employers. "The Early Retiree Reimbursement Program not only highlights the apprehension of elimination of this benefit, but also...
This faucet will be something that a hospital will also have to consider if it is currently a benefit that they offer. If they find that providing retiree coverage is too costly then this may very well be something that is done away with for the good of the organization as a whole.
References
Clarke, R.W., Keckley, P.H. & Kraus, S. (2012). Retrieved from http://www.deloitte.com/view/en_US/us/Insights/Browse-by-Content-Type/deloitte-review/deloitte-review-government/6411d6082dea9210VgnVCM100000ba42f00aRCRD.htm
Employer Health Care Reform: Moving Beyond Compliance. (2011). Retrieved from http://www.deloitte.com/view/en_US/us/Services/consulting/all-offerings/hot-topics/human-capital-trends-
2011/d4e0238330d8f210VgnVCM2000001b56f00aRCRD.htm
Employers planning cutbacks in retiree coverage in response to health care reform. Shifting retirees to Medicare Part D and to the insurance exchanges are part of the strategy.
(2011). Retrieved from http://quinnscommentary.com/2011/05/10/employers-planning-cutbacks-in-retiree-coverage-in-response-to-health-care-reform-shifting-retirees-to-medicare-part-d-and-to-the-insurance-exchanges-are-part-of-the-strategy/
The Patient Protection and Affordable Care Act: An Overview of Its Potential Impact on State Health Programs. (2010). Retrieved from http://www.lao.ca.gov/reports/2010/hlth/fed_healthcare/fed_healthcare_051310.pdf
The Patient Protection and Affordable Care Act Detailed Summary. (n.d.). Retrieved from http://dpc.senate.gov/healthreformbill/healthbill04.pdf
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