risk

Title

Students name:

Instructors name:

School:

Due Date:

1

a).

$500 x 12 months = $6,000 per year

b). This employee benefit can help Michael in increasing his job satisfaction and can help him save or make more money over some period of time. His family can also benefit from this benefit in case they have a health problem and need to seek a medical attention.

2.

a).

$50 x 12 months= $600 per year

b).

The income tax will remain the same. Therefore he would pay;

$50 x 12 months= $600 per year

c).

This will be 40% of the original premium. Therefore;

40% x 50$ = 20$

20$ x 12= 240$ per year

3.

The Cadillac Tax will reduce the overall cost of health care and minimize the tendency of the organizations in providing appropriate health care benefits to the employees. This will lead to over-utilization of health care services.

4.

According to the CEO of the United Healthcare, Stephen Hemsley, the overall small market size and the short term risk profile in the market sector continue to imply that it cannot be served on a sustained and effective basis. The health insurance company had in the past lost $475 million on the exchanges established by ACA and there was a possibility it could lose much more in the next financial year.

References

Bryan, B. (2016, April 19). United Healthcare quitting Obamacare - Business Insider. Retrieved from http://www.businessinsider.com/united-healthcare-quitting-obamacare-2016-4

The Cadillac Tax will Impact Government Employees and Taxpayers » Publications » Washington Policy Center. (2015, March 10). Retrieved from http://www.washingtonpolicy.org/publications/detail/the-cadillac-tax-will-impact-government-employees-and-taxpayers