Under the Affordable Care Act, employers with 50 or more full-time equivalent employees must offer health insurance or face a fine. Furthermore, they must provide their workers with subsidized coverage.
If the Affordable Care Act (ACA) is repealed, millions of people could lose their coverage and face financial ruin from rising costs. Furthermore, individuals may no longer be protected against discrimination by insurers for preexisting conditions.
1. Job Loss
The Affordable Care Act has had a profound effect on the economy, providing health insurance to millions of Americans. If repealed, many would lose their coverage and face severe repercussions in terms of employment opportunities.
Under the Affordable Care Act (ACA), large employers are required to offer insurance or pay penalties. This creates an incentive for businesses to reduce full-time employees’ hours or convert them to part-time employment in order to circumvent paying the employer mandate of the ACA.
Casey Mulligan, a University of Chicago economist, has modeled the effects of the Affordable Care Act on labor markets and estimates that up to 3 million to 4 million jobs may be lost this year due to this policy change. Furthermore, he believes the employer mandate has resulted in an increase in part-time employment of less than 30 hours.
2. Taxes
The Affordable Care Act (ACA) contains a variety of taxes, including one on high-income earners. These increases aim to raise revenue and discourage unnecessary healthcare use.
If the Affordable Care Act (ACA) is repealed, these taxes will also be eliminated. This includes the medical device tax, Cadillac tax and health insurance tax.
Although this may cause financial strain to those relying on employer-provided healthcare, it should not affect everyone equally. That is because these taxes are only part of the Affordable Care Act (ACA) and do not cover all costs.
Recent study revealed that, if the Affordable Care Act were repealed, federal budget deficits would increase over the next decade. This increase is largely attributable to changes to Medicare payments as well as higher taxes on high-income earners and three of its repealed taxes.
3. Waiting Periods
If you lose your job and do not find a new position with health benefits within 63 days, there will be an extended waiting period of half a year. During that time, medical bills could mount up or even lead to serious accidents or illnesses that require hospitalization.
If your employer does not offer health coverage, you can still apply for a plan on the exchange. However, the Affordable Care Act’s market reforms have made it harder for insurers to charge high premiums or provide plans with inadequate preexisting condition and maternity exclusions.
If the Affordable Care Act is repealed, it could have a major impact on employees who lose their jobs and are unable to find another full-time position with health benefits within 63 days. Employers with many employees needing coverage may feel this ripple effect more acutely.
4. Health Insurance
The Affordable Care Act has made health insurance more accessible for many Americans by making it available through the individual and small business market. Furthermore, Medicaid coverage was expanded to millions more Americans.
The law has made it illegal for insurance companies to deny coverage based on a person’s medical condition, providing millions with access to lifesaving medications.
If the Affordable Care Act (ACA) is repealed, more people could become uninsured and unable to afford their prescription drugs. Furthermore, this would restrict access to care for vulnerable populations such as seniors or people with preexisting conditions.
The Affordable Care Act (ACA) has also safeguarded women against discrimination by prohibiting insurance companies from charging them more due to their gender. This is essential, as a return of sex discrimination could cost women an estimated $1 billion more annually and cause damage to small businesses that hire them.
