Principles of Risk Management and Insurance 13th Edition by George Rejda,Michael McNamara

Exercise 3

Doug, age 40, is the owner of a small firm that sells window blinds and cleans carpets. The company provides health insurance for seven employees. The wife of one employee has breast cancer and has incurred substantial medical bills, which resulted in a 40 percent increase in health insurance premiums for the company. Doug is not certain that the company can continue to provide health insurance for the employees because of the substantial increase in premiums. Explain the provision in the Affordable Care Act that will enable Doug to provide affordable health insurance to his employees.