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hello and welcome to coastal payroll services webcast on the Patient Protection and Affordable Care Act today well be talking about the notice of exchanges and subsidies effective October first 2013 employers of all sizes will be required to provide the notice of exchanges and subsidies to their employees so today well talk in more detail about what the notice means what should be included in the notice it will also talk a little more detail about the health care exchanges and what they mean to your employees coastal payroll is a leading provider of payroll HR and time and attendance services in Southern California and our ongoing efforts are to understand the Affordable Care Act and all the wide-ranging provisions of the Act to adapt our services to assist in compliance efforts and to ease the administrative burden of complying with the law and to connect our clients through ongoing updates such as this webcast so that we can keep our clients informed about the law and all of the u

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What is a subsidy in simple terms?

A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

What do we mean by subsidized?

subsidized; subsidizing. transitive verb. : to furnish with a subsidy: such as. : to purchase the assistance of by payment of a subsidy. : to aid or promote (someone or something, such as a private enterprise) with public money.

What happens when you subsidize?

A subsidy generally affects a market by reducing the price paid by buyers and increasing the quantity sold. Subsidies are usually pareto inefficient because they cost more than they deliver in benefits.

What is an example of subsidize?

For example, if a government sends monetary assistance that reimburses 15% of all health expenditures to a group that is paying 15% income tax. Exactly the same subsidy is achieved by giving a health tax deduction. Tax subsidies are also known as tax expenditures. Tax breaks are often considered to be a subsidy.

What does subsidize mean in business?

A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

What does it mean to have something subsidized?

subsidized; subsidizing. transitive verb. : to furnish with a subsidy: such as. : to purchase the assistance of by payment of a subsidy. : to aid or promote (someone or something, such as a private enterprise) with public money.

What does it mean when something is subsidize?

: to aid or promote (someone or something, such as a private enterprise) with public money. subsidize soybean farmers. subsidize public transportation.

Does subsidized mean free?

If a government or other authority subsidizes something, they pay part of the cost of it.

How does a subsidy work?

A subsidy is an incentive given by the government to individuals or businesses in the form of cash, grants, or tax breaks that improve the supply of certain goods and services. With subsidies, consumers are able to access cheaper products and commodities.

What is an example of a direct subsidy?

For example, food stamps are a direct subsidy from the government to low-income families. The government likewise subsidizes the farming industry, making direct payments to farmers to allow them to operate even when the price of goods fluctuates.

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