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- W2261784074 abstract "On the conventional account, Congress drafted the Affordable Care Act (ACA) to keep the pre-existing American health-insurance system largely intact. However, this Article takes a different perspective. It demonstrates that the ACA, as written, could actually end the employer-provided system and gradually transition the vast majority of privately insured Americans onto the state-run exchanges. The Cadillac tax, which takes effect in 2018, combined with the employer mandate and its affordability and minimum value requirements will make offering benefits to employees an increasingly inefficient decision for employers. As premiums continue to rise, even the most modest health-insurance coverage could become a Cadillac plan. Thus, the Cadillac tax and the employer mandate could place employers in a double-bind: If they offer affordable coverage of minimum value they might trigger the Cadillac tax but if they offer non-Cadillac coverage it will not meet the requirements of the mandate. Employers are already cutting back their benefits in anticipation. This Article proposes that under certain circumstances it will become economically rational for employers to pay the no offer penalty instead of providing costly and highly taxed health insurance. While the ACA was theoretically not intended to drastically change the structure of the American health-insurance system, it could well have the eventual effect of replacing our familiar employer-provided benefits system with the highly regulated state-run exchanges." @default.
- W2261784074 created "2016-06-24" @default.
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- W2261784074 date "2015-06-20" @default.
- W2261784074 modified "2023-09-26" @default.
- W2261784074 title "The ACA Double-Bind" @default.
- W2261784074 hasPublicationYear "2015" @default.
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