Affordable Care Act Information for Business Leaders

By October 25, 2013Uncategorized

Affordable Care Act and its Effect on Employers

Small firms face many obstacles to purchasing coverage for their employees in the current health care system. The Affordable Care Act (“ACA”) has many features intended to improve gaining access to reasonably affordable coverage for small firms. Every employer will deal with specific issues related to the ACA. Some analysts suggest that in many cases small businesses employers will derive noticeable advantages from the ACA. The primary benefits of health reform for small firms will come from the introduction of the Small Business Health Options Program (SHOP) exchanges and reforms to health insurance markets.

Typically, small firms will have access to more affordable coverage in the SHOP exchanges, and some will be able to use tax credits to aid in purchasing coverage. Some analysts have concluded that businesses with less than 50 workers will enjoy noticeable health care savings in addition to a minimal increase in the number of employees that will be covered in the employer-sponsored plans.

All plans offered in the exchanges will have to conform to new rating restrictions established in the ACA. Further, the same is true for new policies issued outside the exchanges in the small-group and individually purchased markets. Premiums will only be allowed to vary in these markets based on age (with premiums charged for those age 64 capped at 3 times a premium for an 18-year-old for identical coverage) and tobacco use (with users charged no more than 1.5 times the premium for non-users), geography and policy type (e.g., single, family). No premium rating based on health status, claims history, industry, group size, duration of coverage, etc., will be permitted as of January 1, 2014.

Estimates of the effects on employers with greater than 50 employees are much smaller. Employer costs should increase by one percent as a result of new assessments just offsetting declines in premium contributions. Offer rates for these firms should remain relatively stable, but their gains are not as strong as for the smallest firms, yet they are also not consistent with more negative predictions suggesting a virtual collapse of employer health insurance. In addition, trends preceding the above mentioned reform showed strong declines in offer rates and coverage among small firms. Thus, the evidence suggests that the ACA may have a stabilizing influence on small firm coverage. It could well be that significant health care cost savings will accrue to  (a) firms with less than 50 workers, as well as (b) a small increase in the number of people covered by their employer-sponsored plans.

For more information, see:


SAP Systems Consulting for Growing Small and Mid-sized Businesses

If you’re considering implementing a singular software data management solution for your company, Cornerstone Consulting makes it easy for business leaders to discover if the enterprise resource planning (ERP) and premier business management solution, SAP Business One with built-in SAP Crystal Reports and mobile functionality, will be the a good fit for your enterprise.

Thinking about making your business run better than your competitors? We’d like to hear your ideas concerning how you’d like to re-imagine how well your operations could run with streamlined, integrated, state-of-the-art, cutting-edge software and technology. We’re excited to discuss how your small or medium enterprise (SME) can not only run better but also out-smart your competitors. Call us today at 813-321-1300!

No time to call us now?  No worries ““ we know you’re busy. If you’d like, you can fill out the brief form within the Contact Cornerstone page, and let us know a good time to contact you in the near future. We’ll touch base with you when it’s convenient for your schedule.  We’re looking forward to connecting with you!

With an Enterprise Software System, SAP Business One, Provided by SAP Gold Partner, Cornerstone Consulting, Your Business can Have Cutting Edge Technology, Superior Real-time Analyticals and Accurate Reports Now

Why do so many growing Manufacturing, Online Retail and/or Wholesale Distribution businesses located in FL, as well as companies located through out the U.S., rely on Cornerstone for enterprise resource planning (ERP) systems, related services and technical support? As an award-winning Top Value Added Reseller and SAP Gold Partner,  simply stated, our expertise is superior. Cornerstone Consulting has been providing state-of-the-art business software systems, as well as related technical support, to small and mid-sized manufacturing and wholesale distribution enterprises for more than thirty years.

Cornerstone Consulting’s areas of expertise include, but are not limited to:

  • SAP Business One
  • E-commerce
  • M-commerce
  • Mobility
  • Business Intelligence (BI)
  • Business Analytics
  • Internet
  • Bar codes and Scanning
  • EDI
  • Databases
  • Cloud Computing
  • Custom Programming
  • Strategic Marketing
  • Software as a Service (SaaS)
  • Web Development

If you’re interested in working with an advanced technology consulting, web development, and IT firm specializing in business automation and optimization, you have found your dream team. You can rely on Cornerstone to provide outstanding software products, related services and technical support for all areas of your small or medium sized business, such as: financial accounting, operations, customer relationship management, sales, inventory control and tracking, warehouse management, e-commerce, and more. Cornerstone’s highly-skilled programmers, trainers and consultants specialize in providing our Manufacturing, Wholesale Distribution, and Online Retail clients with optimal business process configuration, integration and automation.


Leave a Reply