A growing number of small and midsize employers are opting to self-insure their employee health plans, in part because self-insuring allows employers to avoid some—but by no means all—of the coverage mandates and administrative costs imposed by the Affordable Care Act (ACA). While the data do not conclusively demonstrate that ACA is the reason for this shift, the findings "are consistent with the prediction that the ACA would cause more small- and midsized employers to adopt self-insured plans". Briefly describe two main the reasons why, after 2000, an increasing percentage of employers with 1400 to 5000 employees chose to self-insure to provide health insurance to their employees ?

Understanding Business
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ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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A growing number of small and midsize employers are opting to self-insure their employee health plans, in part because self-insuring allows employers to avoid some—but by no means all—of the coverage mandates and administrative costs imposed by the Affordable Care Act (ACA).

While the data do not conclusively demonstrate that ACA is the reason for this shift, the findings "are consistent with the prediction that the ACA would cause more small- and midsized employers to adopt self-insured plans".

Briefly describe two main the reasons why, after 2000, an
increasing percentage of employers with 1400 to 5000 employees chose to self-insure
to provide health insurance to their employees ?
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