Eighty-five percent of employers expect the Affordable Care Act to lead to an increase in per-employee benefits costs, according to research from Deloitte and the International Society of Certified Employee Benefit Specialists (ISCEBS). Not surprisingly, 63% of employers said that they are mainly focused on controlling total health care costs.
"Wait and see." Two-thirds of employers said they are not making any changes to their benefit plans at this point due to the ACA, which signals that employers are using a "wait and see" approach towards health reform, Deloitte/ISCEBS noted. Seventy-three percent of respondents indicated they expect to reevaluate their benefits packages over the next 12 months in light of health reform changes. However, only 9% of employers indicated that they plan to drop employer-sponsored coverage because of health reform.
Top priorities. While "health reform costs" remained the number one priority among employers for the second year in a row (and for six out of the last seven years), "the willingness of employees to take on greater cost sharing" moved into the number two spot for 2011, according to Deloitte/ISCEBS. Sixty-two percent of employers indicated that they have considered increasing cost-sharing for active employee plans over the past 12 months, while another 30% said that they will consider increasing employee cost sharing for active employee plans over the next 12 months.
The survey was conducted in January 2011 and was completed by 242 participants online.
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, April 27, 2011
Monday, April 25, 2011
Reports on reform coming your way
Health reform watchers know that the 2011 budget deal signed by President Obama on April 15 stripped the free choice voucher provisions from the ACA.
Observers may not know, however, that a lesser known provision in the budget act ensures that they've got a whole lot of reading to look forward to in the coming months. (For you extra wonky types: the provision is Act Sec. 1856 of P.L. 112-10.)
Why? Congress has mandated the production of two waves of federal agency reports on the cost or efficacy of various ACA provisions. The first wave is due to hit around June 15 (60 days after enactment) with the second wave to follow around July 15 (90 days after enactment).
Extra scrutiny. Which ACA provisions merited extra scrutiny in the eyes of the (Republican?) members of Congress who asked for these reports? Here's the list:
--Implementation contractors. The GAO must provide a list of contractors (including how much they're getting paid) hired by HHS and other agencies to implement ACA provisions.
--Requests for annual limit waivers. The GAO must also conduct an audit of the requests for waiver of the annual limit requirements of PHSA Sec. 2711(a).
--Premium costs. CMS's Chief Actuary must prepare a report that estimates the impact of the guaranteed issue, guaranteed renewal, and community rating requirements in the Act over a 10-year period beginning in 2014. Will more people see a decrease in premium costs, or an increase?
--Comparative effectiveness research funding. The GAO must also audit funds spent for comparative effectiveness research by the Agency for Healthcare Research and Quality, the National Institutes of Health and other agencies.
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.
Observers may not know, however, that a lesser known provision in the budget act ensures that they've got a whole lot of reading to look forward to in the coming months. (For you extra wonky types: the provision is Act Sec. 1856 of P.L. 112-10.)
Why? Congress has mandated the production of two waves of federal agency reports on the cost or efficacy of various ACA provisions. The first wave is due to hit around June 15 (60 days after enactment) with the second wave to follow around July 15 (90 days after enactment).
Extra scrutiny. Which ACA provisions merited extra scrutiny in the eyes of the (Republican?) members of Congress who asked for these reports? Here's the list:
--Implementation contractors. The GAO must provide a list of contractors (including how much they're getting paid) hired by HHS and other agencies to implement ACA provisions.
--Requests for annual limit waivers. The GAO must also conduct an audit of the requests for waiver of the annual limit requirements of PHSA Sec. 2711(a).
--Premium costs. CMS's Chief Actuary must prepare a report that estimates the impact of the guaranteed issue, guaranteed renewal, and community rating requirements in the Act over a 10-year period beginning in 2014. Will more people see a decrease in premium costs, or an increase?
--Comparative effectiveness research funding. The GAO must also audit funds spent for comparative effectiveness research by the Agency for Healthcare Research and Quality, the National Institutes of Health and other agencies.
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.
Friday, April 22, 2011
Parents take note- HHS is educating your kids on their health coverage rights
It's common knowledge that many employers and insurers are concerned upcoming Affordable Care Act (ACA) deadlines, but some parents out there might be getting a little nervous, too. Those moms and dads who weren't planning to cover health insurance costs for their kids, perhaps because of the extra cost, may feel that the Department of Health and Human Services (HHS) is breathing down their necks a bit.
This is because the website http://www.healthcare.gov/ has a message for the nation's teenagers and young adults, advising them that they can be covered on their parents' insurance until age 26. It also has a link to a Facebook site, at www.facebook.com/youngadultcoverage. The Facebook site advises students, both in writing and through a video by Kalpen Modi of the White House Office of Public Engagement to ask their parents what their insurance company is, and to call the insurer to ask what their parents have to do to get them coverage. They are then advised to follow up with their parents.
Moms and dads may as well get used to the idea of paying for their kids' insurance, though, because, although coverage for dependents isn't mandatory at the moment, starting in 2014, parents will be required by law to cover their dependents on their health insurance, or pay a penalty. Code Sec. 5000A, as added by the ACA, will mandates payment of the greater of a flat dollar amount or an applicable percentage of income by parents who fail to obtain coverage for dependents, unless their plan has grandfather status and the dependents have coverage available from their employer. The amounts will increase in 2015.
And, to make sure that the nation's young people are thoroughly educated about their right to coverage, a special, rather chatty message on the site, posted by HHS Secretary Kathleen Sebelius, states that letters have been sent to university and student body presidents detailing how the ACA can enable students to obtain coverage under their parents' plans. The message starts off, "If you’re a student, getting to your 8:00am biology class on time is difficult. Or maybe it is hard for you to focus in your 3:00pm French literature class. You have to make time to do laundry and study for finals. And don’t you dare forget to call your Mom! .... As students, you have enough on your minds without having to worry about health insurance coverage."
It goes on to say that the HHS, along with the Department of Education, is going to help student groups host informational sessions on insurance options. Flyers outlining benefits available under the ACA are downloadable at healthcare.gov, and a "badge" which states "Under 26? You may be eligible for health coverage under your parent's plan. Learn How." can be downloaded from www.healthcare.gov/stay_connected.html#ya.
The information is bound to be welcomed by many student groups, however. Sebelius does point out that young adults comprise one of the largest groups of uninsured Americans, and that they are almost twice as likely to be uninsured as older adults, meaning that many students were left with the choice of either finding a job with health insurance, or completing a higher education without insurance coverage.
For more information. 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.
This is because the website http://www.healthcare.gov/ has a message for the nation's teenagers and young adults, advising them that they can be covered on their parents' insurance until age 26. It also has a link to a Facebook site, at www.facebook.com/youngadultcoverage. The Facebook site advises students, both in writing and through a video by Kalpen Modi of the White House Office of Public Engagement to ask their parents what their insurance company is, and to call the insurer to ask what their parents have to do to get them coverage. They are then advised to follow up with their parents.
Moms and dads may as well get used to the idea of paying for their kids' insurance, though, because, although coverage for dependents isn't mandatory at the moment, starting in 2014, parents will be required by law to cover their dependents on their health insurance, or pay a penalty. Code Sec. 5000A, as added by the ACA, will mandates payment of the greater of a flat dollar amount or an applicable percentage of income by parents who fail to obtain coverage for dependents, unless their plan has grandfather status and the dependents have coverage available from their employer. The amounts will increase in 2015.
And, to make sure that the nation's young people are thoroughly educated about their right to coverage, a special, rather chatty message on the site, posted by HHS Secretary Kathleen Sebelius, states that letters have been sent to university and student body presidents detailing how the ACA can enable students to obtain coverage under their parents' plans. The message starts off, "If you’re a student, getting to your 8:00am biology class on time is difficult. Or maybe it is hard for you to focus in your 3:00pm French literature class. You have to make time to do laundry and study for finals. And don’t you dare forget to call your Mom! .... As students, you have enough on your minds without having to worry about health insurance coverage."
It goes on to say that the HHS, along with the Department of Education, is going to help student groups host informational sessions on insurance options. Flyers outlining benefits available under the ACA are downloadable at healthcare.gov, and a "badge" which states "Under 26? You may be eligible for health coverage under your parent's plan. Learn How." can be downloaded from www.healthcare.gov/stay_connected.html#ya.
The information is bound to be welcomed by many student groups, however. Sebelius does point out that young adults comprise one of the largest groups of uninsured Americans, and that they are almost twice as likely to be uninsured as older adults, meaning that many students were left with the choice of either finding a job with health insurance, or completing a higher education without insurance coverage.
For more information. 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.
