To illustrate the choices that companies face under the Affordable Care Act, consider a hypothetical firm, Florida Inc., that employs 52 full-time employees with an average salary of $55,000. Currently, the firm offers health care benefits only to 10 senior managers, paying 100% of premiums at an average cost of $5,500 per manager.

Under the Affordable Care Act, companies with more than 50 workers are classified as large businesses and are required to either offer comprehensive coverage health coverage to all full-time workers or pay a penalty…