Analysis of Contemporary Healthcare Issue

The Affordable Healthcare Act (ACA) will affect businesses differently depending on their size. Under the law, companies with not more than 25 workers will receive tax credits. Beginning January of this year, nonprofits can benefit from increased tax credits. Small organizations qualify for a 35% tax credit, which will help offset the insurance costs. This is for organizations with less than 25 employees receiving an annual salary of not more than $50,000, and who contribute 50% towards their employees’ insurance. Companies do not have to provide insurance if they have a workforce of 50 workers or fewer. On the other hand, organizations will have to pay penalties if they have more than fifty workers, yet they do not provide them with insurance. Small nonprofit organizations with 50 employees or fewer will not have to pay any penalties even if their employees do not have insurance coverage (HHS, n. d.).

Financial management employees are tasked with the responsibility of planning how they will acquire and use the available funds. They are instrumental in determining the long term and short term financial decisions that the organization makes. This includes planning for and purchasing healthcare facilities and equipment. They have to determine the sources they will use to get the funds needed to finance the organization’s operations. They manage the cash, securities and other short-term assets of the company. They have to identify ways of improving performance in the organization while at the same time help it in reducing costs. Under the affordable healthcare act, the financial management staff will have increased responsibilities. The employees will have to ensure that their organization complies with the established policies. The law has increased the number of people who can get basic healthcare, in addition to changing the way people are insured. The financial management workers will have to work together with the insurance providers to implement the new policies.

The financial management department has to determine whether the organization is eligible for any tax credits or if it is at risk of paying penalties. The affordable healthcare act has different provisions for organizations. It is up to the finance department to determine whether the organization complies with the set rules. The department has to ensure that the organization benefits from the different exchanges offered in the act. It has to find ways of ensuring that the company can save money by reducing health insurance costs. The affordable healthcare act provides both individual exchanges and small business health options program exchanges. Each of them has several benefits for the organization. The financial management workers have to determine which one is applicable for their organization and how it will benefit them.

The implementation of the healthcare act will affect businesses significantly. Therefore, there is a need to raise awareness and educate people concerning the provisions and requirements of the act. For-profit and nonprofit organizations have different provisions under the healthcare act. The act treats organizations differently, depending on whether they are small, medium, or large. It also has different considerations for employers who provide insurance for their employees and those who do not. Such information is necessary for the finance department. The employees need to know which regulations apply to their organization, and they need to inform the management on the steps to take. The finance department has to be knowledgeable of all the provisions contained in the act. They are responsible for ensuring that the organization complies with the set rules and regulations, especially on matters relating to finance.

Reference

HHS (n. d.). Key Features of the Affordable Care Act by Year. U.S. Department of Health & Human Services. Retrieved from http://www.hhs.gov/healthcare/facts/timeline/timeline-text.html