BONITA SPRINGS, Fla.
The Affordable Care Act (ACA) likely will impact small,
low-wage employers most in the near term, while large companies
wont see any effect until probably 2018, according to an
"Its a major
issue for (small) low-wage employers and employees. The cost of
retaining a (full-time) low-cost employee with health benefits
is so much more difficult. Many (employers) have reduced hours
to get below 30 (hours), which defines a full-time employee,"
Paul Ginsburg, president of the Center for Studying Health
System Change, told the Metals Service Center Institute (MSCI)
Tubular Conference in Bonita Springs, Fla.
typically are defined as those with up to 100 employees,
Ginsburg told AMM on the sidelines of the conference,
although definitions under the act can vary.
employers will see little effect until the so-called "Cadillac
tax" provision starts in 2018, which imposes a charge on
premiums above a certain ceiling. Many large employers that are
adjusting their health care plans this year are actually
preparing for the Cadillac tax, Ginsburg said.
In general, the act
will favor employers with older workers as their insurance
premiums will shrink, while those with younger employees will
have to pay more than previously due to a mandated compression
in the ratio between premiums for older and younger
While there have been
a lot of challenges to the law by Republicans, Ginsburg sees
little chance of it going away completely. "I dont think
the ACA will collapse," although some provisions might