While many U.S. companies initially hoped they could preserve much of their pre-reform plan design for their group health plans by maintaining so-called grandfathered status under the Affordable Care Act, that's no longer the case. A recent survey by Hewitt Associates reveals that almost all companies now believe they will not hold on to grandfathered status. Ninety percent of companies report they anticipate losing grandfathered status by 2014, with the majority expecting to do so in the next two years.
Under the Act, companies can lose their grandfathered status if they make certain changes to plan terms, including reducing benefits, significantly raising co-payment charges, significantly raising deductibles, or (for insured plans) changing insurance carriers.
According to input from over 450 companies--representing nearly 7 million employees--most companies expect to lose grandfathered status either because of health plan design changes (72 percent) or changes to company subsidy levels (39 percent). Employers also cited consolidation of health plans (16 percent), changes to insurance carriers (16 percent) and union negotiations (15 percent) as additional reasons.
The story's the same for both self-insured and fully insured plans. Of those companies with self-insured plans, most (51 percent) expect to first lose grandfathered status in 2011, while another 21 percent plan to lose the status in 2012. For those with fully insured medical plans, loss of grandfathered status is expected to occur either in 2011 (46 percent) or 2012 (18 percent).
For free CCH analysis of recent regulatory developments on health care reform, go to http://hr.cch.com/.
Wednesday, September 8, 2010
Friday, September 3, 2010
Is ACA really a threat to student health plans?
The uproar over a letter sent in August by the American Council on Education (ACE) to Kathleen Sebelius, Secretary of the HHS, raises the question of whether or not the Patient Protection and Affordable Care Act (ACA) really poses a threat to student health plans. According to the letter, the ACE is concerned that the application of several provisions under the ACA could eventually make it impracticable for institutions of higher learning to continue offering student health plans.
The ACE's letter focuses on the individual mandate, which requires Americans to obtain minimum essential health insurance coverage by 2014 or pay a penalty. The ACE is concerned that most student health plans, because they typically consist of short-term coverage as defined by HIPAA, would not meet the definition of "minimum essential coverage" under Sec. 5000A(f)(1) of the ACA, meaning that students would have to purchase additional coverage if they wanted to avoid the penalty.
The ACE is asking the HHS to issue guidance clarifying that student health coverage be considered "minimum essential coverage" under the individual mandate if it meets certain specified requirements.
Conservatives are pointing to the ACE letter as one example of possible detrimental effects of the ACA on Americans' current health care coverage, arguing that the ACA will, despite promises from the White House, result in the eventual demise of cheap university health care plans. More liberal commentators, on the other hand, are pointing out that the ACE is merely asking for clarification.
For a comprehensive analysis of the Patient Protection and Affordable Care Act, and additional information on health reform and other developments in employee benefits, just click here.
The ACE's letter focuses on the individual mandate, which requires Americans to obtain minimum essential health insurance coverage by 2014 or pay a penalty. The ACE is concerned that most student health plans, because they typically consist of short-term coverage as defined by HIPAA, would not meet the definition of "minimum essential coverage" under Sec. 5000A(f)(1) of the ACA, meaning that students would have to purchase additional coverage if they wanted to avoid the penalty.
The ACE is asking the HHS to issue guidance clarifying that student health coverage be considered "minimum essential coverage" under the individual mandate if it meets certain specified requirements.
Conservatives are pointing to the ACE letter as one example of possible detrimental effects of the ACA on Americans' current health care coverage, arguing that the ACA will, despite promises from the White House, result in the eventual demise of cheap university health care plans. More liberal commentators, on the other hand, are pointing out that the ACE is merely asking for clarification.
For a comprehensive analysis of the Patient Protection and Affordable Care Act, and additional information on health reform and other developments in employee benefits, just click here.
Wednesday, September 1, 2010
Health reform losing popularity
According to a recent Rasmussen Reports telephone survey, fifty-eight percent of U.S. voters favor repeal of the Affordable Care Act, including forty-six percent who "strongly favor" repeal. Thirty-six percent of those responding were opposed to repeal.
And, a recent Kaiser Family Foundation tracking poll shows that health care reform has lost some popular support. Only forty-three percent of Americans responding to the poll viewed the law favorably in August, which is down from fifty percent in July, and forty-five percent held unfavorable views.
It seems to be the individual mandate that's causing the trouble, since seventy percent of those surveyed by Kaiser were not in favor of the requirement that they either buy health insurance or pay a penalty. On the other hand, approximately seventy-five percent of those surveyed support helping low- and moderate-income Americans to buy coverage via subsidies.
Both Rasmussen and Kaiser indicate that attitudes toward the health care reform law seem to run along party lines. Rasmussen points out that repeal was favored by eighty-six percent of Republicans and fifty-seven percent of voters not affiliated with either party, while fifty-nine percent of Democrats were opposed to repeal.
According to Kaiser, sixty-eight percent of Democrats that were polled supported health care reform while seventy-seven percent of Republicans opposed it.
For a comprehensive analysis of the Patient Protection and Affordable Care Act, and additional information on health reform and other developments in employee benefits, just click here.
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And, a recent Kaiser Family Foundation tracking poll shows that health care reform has lost some popular support. Only forty-three percent of Americans responding to the poll viewed the law favorably in August, which is down from fifty percent in July, and forty-five percent held unfavorable views.
It seems to be the individual mandate that's causing the trouble, since seventy percent of those surveyed by Kaiser were not in favor of the requirement that they either buy health insurance or pay a penalty. On the other hand, approximately seventy-five percent of those surveyed support helping low- and moderate-income Americans to buy coverage via subsidies.
Both Rasmussen and Kaiser indicate that attitudes toward the health care reform law seem to run along party lines. Rasmussen points out that repeal was favored by eighty-six percent of Republicans and fifty-seven percent of voters not affiliated with either party, while fifty-nine percent of Democrats were opposed to repeal.
According to Kaiser, sixty-eight percent of Democrats that were polled supported health care reform while seventy-seven percent of Republicans opposed it.
For a comprehensive analysis of the Patient Protection and Affordable Care Act, and additional information on health reform and other developments in employee benefits, just click here.
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