Human Resource Management (HRM) and the Affordable Care Act (ACA)

Discussion Post: Human Resource Management (HRM) and the Affordable Care Act (ACA)
Has the ACA affected larger employers and full-time, part-time, and temporary employees
more positively or negatively? Why
What are the potential pitfalls for organizations trying to comply with the law?
Is it good or bad that the Internal Revenue Service and the Department of Labor play a
role in the enforcement of this law? Why?
Considering how the law affects healthcare organizations as employers and as healthcare
providers, what is the best way for HRM in healthcare organizations to address the issues
arising from the new law?
The ACA has affected larger employers negatively while benefiting workers. In
particular, the Employer Shared Responsibility Mandate demands that larger employers (those
with 50 and more workers) must offer affordable healthcare coverage to its workforce or get
penalized. On the other hand, the Act demands that temporary, part-time, and full-time
employees must receive compensation benefits, overtime payment, and unemployment benefits
(Gadsden & Rifkin, 2014). Therefore, one of the potential pitfalls for employers or organizations
trying to comply with this legislation is the management of data quality (especially the records of
workers), including benefits, payroll, taxes, recruitment, terminations, and so on. Data
management plays a crucial role in determining the compliance of an organization.
It is also important to note that it is a good thing to have the IRS and the Department of
Labor involved in the enforcement of this legislation. The IRS, in particular, plays an important
role in identifying and monitoring non-compliant employers because it has all their details,
including the taxes they pay, the wages workers receive, as well as the amount of health
insurance paid. On the other hand, the Department of Labor plays a central role in creating the

HRM AND AFFORDABLE CARE ACT 3
labor rules or guidelines that govern the workforce, such as the type and amount of health
benefits employees (care providers) should receive. Finally, the best way for HRM in healthcare
organizations to solve the problem of data management is to keep pace with moving technology.
Adopting new human resource management systems is necessary to keep all employee data up-
to-date.

References

Gadsden, S., & Rifkin, S. (2014). Research report: Monitoring the impact of the Affordable Care
Act on employers. Urban Institute, 1-45. Retrieved from
https://www.urban.org/sites/default/files/publication/33696/413273-Monitoring-the-
Impact-of-the-Affordable-Care-Act-on-Employers.PDF