Monthly Archive for March, 2011

ACA – What are the Employer Incentives?

Last week I wrote about the confusing incentives for employers who offer health insurance for their employees.  Are the penalties, excuse me, the “assessable payments”, a sufficient deterrent to keep employers in the health care coverage providing business?

Yet those penalties are only the half of it.

The wheel of progress?

Employers also face penalties if their plans fail to measure up to the law’s standards.

  • It must have an actuarial value of at least 60
  • Employee share of the premium must be “affordable”

The definition of affordable gets interesting.  The cost of employee only coverage cannot exceed 9.5% of household income.

9.5% of household income

Get that?  Household income! Continue reading ‘ACA – What are the Employer Incentives?’

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ACA and The Employer Mandate – Can It Work?

Much fuss has been made of health reform’s “individual mandate”.  It is the favorite target of tea baggers.  Several states have filed suit against the federal government to block its implementation.

There are debates about whether the individual mandate is legal, and more important, whether it will be effective.

These questions may take on even more significance if employer-sponsored health insurance (ESI) does not survive.   There are some, including this author, who question whether it will survive?

Shamrock on First Day of Spring

Confusing Incentives

What will be the incentives under ACA (the Affordable Care Act) for employers to continue to provide health insurance?  During the debate leading up to its passage a year ago, employers clung to the promise that if more people paid for their coverage it would lower the costs to employers. Continue reading ‘ACA and The Employer Mandate – Can It Work?’

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PPACA After One Year – Employers Retreat on Health Care

As we approach the one year anniversary of health care reform, The Society for Human Resource Management (SHRM) reports that 20% of employers have reduced employee benefits and 32% report that they are likely to reduce benefits.   The Patient Protection and Affordable Care Act (PPACA), that cumbersome piece of legislation signed into law by President Obama on March 23rd of last year and designed to “strengthen the employer based system”, has its challenges.

Of the 20% of employers who have reduced benefits

  • 91% have reduced health care coverage for employees and
  • 89% have scaled back coverage for spouses and children

Of the 32% likely to reduce benefits

  • 85% plan to reduce health care coverage for employees and
  • 84% plan to reduce coverage for spouses and children.

President Obama promised “more security and more stability” for “Americans who have health insurance.”

I don’t think so.

Happy Anniversary PPACA

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Obama Endorses Earlier State Flexibility

President Barack Obama announced support for the Weyden Brown proposal to give state more flexibility in how they implement the Affordable Care Act.

Current law limits the ability of states to develop their own solutions to health care coverage until 2017.  Obama’s move is seen as an effort to counter initiatives in several states that are resisting aspects of health care reform.  Some states oppose the individual mandate, and some state resist the added burden of expanding the Medicaid roles.  But some states, most notably Vermont are moving in the exact opposite direction with popular movements in support of a statewide single payer system.

During last years long drawn out debate leading up to health care reform, the Obama administration resisted bi-partisan efforts to give states more flexibility to develop their own solutions.  Does he now realize the error of that stance?

Jonathan Cohn

wrote for Kaiser Health News and The New Republic

The actual change Obama proposed is, to be sure, modest. Under the Affordable Care Act, states are responsible for creating exchanges (the marketplaces where individuals and small-businesses can buy coverage) as well as implementing other key aspects of reform. That work must be done by 2014. The law allows states to opt out of the scheme, by getting a special waiver from the federal government, as long as they have alternative means for achieving the measure’s mandated goals. But states can’t do that until 2017….

And yet, as the conservative critics note correctly, the flexibility would have limits. The administration made clear that states could opt out of the health law’s requirements only if they could show they would insure at least as many people, providing coverage that was at least as comprehensive and at no greater expenses to the taxpayers…

But couldn’t conservative alternatives achieve the same goals for less money? Not really. Most of the ideas that conservatives like to promote would, at best, expand insurance coverage very modestly — and, in many cases, only by making coverage less comprehensive…

None of which is to say there aren’t better, more efficient ways to achieve universal coverage. Vermont lawmakers want to create a single-payer plan — that is, a government-run insurance program, similar to Medicare. They would probably among the first to apply for a waiver if Wyden-Brown became law. And they’d probably get it, because most estimates suggest a single-payer could satisfy Obama’s criteria: Covering as many people, with the same or better financial protection, for similar or even lower costs. But, of course, that’s not the sort of health care alternative conservatives have in mind.

Margaret Flowers

adds for Physicians for a National Health Plan

States such as Vermont and California, which appear to be closer than any others to enacting a state single-payer health system, welcomed the president’s support for the Wyden-Brown amendment because it would remove one of the many barriers they face. The amendment will still need to be passed by Congress before it arrives at the president’s desk, which may in itself be a formidable feat in the current political climate.

In addition, for states that want to take the path of single payer, even with the amendment, there will still be many hurdles before they can implement such a plan. The amendment only moves up the date when waivers can be applied for. It does not guarantee federal approval of the many waivers a state single-payer system would need, such as being allowed to roll their Medicaid and Medicare populations into their single-payer system….

Of concern is that the president is signaling a greater willingness to allow states to opt out of the health reform bill not because states want to provide better coverage but because governors in some states are opposed to the federal health law altogether. …

While some welcome the president’s support for the amendment and hope that if it passes a state will be able to demonstrate the benefits of a single-payer system, as happened in Saskatchewan (and which led to Canada’s national Medicare system), it is possible that the actual outcome of such an amendment will be a further attack on our necessary public health programs. For this reason, it is imperative that we continue to push for a national health program, improved Medicare for all in the U.S.

Photo Credit:     FLICkR Jobs With Justice
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Consumer Health Care Confidence Peaks After PPACA

The end of 2010 marked the first full calendar year of survey data on American’s experiences and expectations with its health care.  Since 2009 The Robert Wood Johnson Foundation has tracked consumer confidence in health care.

How did the year begin?

How did the year end?

What happened along the way?

The answer to the last question is easy.  On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act.

What is interesting is that for the index overall and in almost every sub-group, the index peaked in April shortly after the passage of health care reform and then trailed off  ending lower than where it started.

The biggest swings were in the groups that had the most to gain from meaningful health care reform, the uninsured, the low income, and the young.

High income and older people showed little change during the year.

Among the uninsured, the year began at 54.3, peaked in April at 69.0 and then trailed of to 50.0 in December.

Likewise among low income families, the index started off at 82.7, hit 85.1 in April, and 86.3 in September and October before plummeting to 71.5 in December.

The index followed a similar trend among the young, beginning the year at 92.6, climbing to 105.2 in April, dipping during the summer before reaching a peak in September of 109.2 and them sinking to 84.2 – a 21 point swing during the year.

The last measure is particularly interesting since it is young people who saw the first real impact of health reform.  The PPACA allowed children up to age 26 to stay on their parents’ health plan.  Did the 27-34 cohort tip that measure?  Or was it the those in the 18-26 group who did not have parents with  heath insurance?

The survey authors carefully note that no clear trends emerge from these data.  Perhaps statistically that is accurate.   But for some, the numbers do tell a story, a story of hope followed by promise, followed by the reality of a promise delayed.

Photo Credit:  JL McGee
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