The Affordable Care Act and its effect on employers
[Editor’s note: This brief was updated to clarify the differences between business establishments and firms.]
The Patient Protection and Affordable Care Act of 2010 (ACA) is designed to expand coverage to millions of Americans, yet it largely preserves the system of employer-sponsored health insurance that covers a majority of Americans.
Nevertheless, the ACA includes several provisions that directly affect employers and can influence their decisions about whether to offer coverage. Before many of the ACA’s provisions began in 2014, CHRT published separate issue briefs examining the key provisions for small employers, along with those affecting midsize and large employers. In addition, CHRT has published briefs on ACA taxes, premiums, and cost-sharing for employers and their workers.
This brief will summarize recent trends in employer-sponsored coverage and provide an update on certain key provisions that have faced implementation challenges. Several provisions of relevance to employers have faced significant delays or changes as the ACA has been implemented.