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Corporations' 'Seismic Shift' to Private Exchanges
The first quarter of 2014 is over. The major provisions of the Patient Protection and Affordable Care Act (the Affordable Care Act, ACA or Act) are now in full swing, save the occasional delay of certain mandates. Companies, both large and small, understand that this law is now a fixture of our legislative structure. It's not being repealed and it's not being overturned. Instead, it will be amended, tugged at, pulled at, changed, expanded, and contracted. That's how legislation works. In all of these changes, which are occurring on a continual basis, legislative impact is not the only impact that necessitates attention. The private marketplace, which has a major role in the changes brought about by the ACA, plays a crucial role in the development of the law, as well as the resulting impact on employers.
'Seismic Shifts'
So, what does that mean? It means the law with respect to providing employer-provided health insurance is changing. It is shifting in greater proportions than we've ever seen before. Shifts in great proportions like this result in significant consequences, which lead to a “seismic shift.” With these great shifts, the way companies provide, and pay for, employee health benefits is also changing, thus contributing to the seismic shift. Benefits, and the provision thereof, was once only a Human Resources issue. However, a resulting factor of this seismic shift is that benefits issues have now fallen at the doorstep, or on the board room table, of the C-Suite.
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