Benefit plan design

Republican Mitt Romney last week laid out his vision for a "consumer market" health care approach to replace President Barack Obama's sweeping reform law, whether or not the U.S. Supreme Court overturns the legislation this month.

Later this month, employers will know - based on the Supreme Court ruling whether to uphold the Patient Protection and Affordable Care Act - if their employees must have health insurance. Should the law and all of its provisions be ruled constitutional, the cost of offering health benefits may prove too much for some employers, allowing employees to seek coverage from state-run insurance exchanges.

A full 42% of employee benefit managers hope the Supreme Court will this month rule that the Patient Protection and Affordable Care Act is unconstitutional, according to research conducted by Employee Benefit News.

Three major U.S. health insurers that provide coverage to millions of Americans said they would keep some protections included in President Barack Obama's health care overhaul regardless of how the Supreme Court rules on the law.

U.S. Health and Human Services Secretary Kathleen Sebelius said on Thursday the administration will be ready to respond if the Supreme Court strikes down all or part of the health care reform law in a landmark ruling expected this month.

Health care reform likely enabled about 6.6 million young adults to join their parents' health insurance plans last year, a report found on Friday, though problems with medical bills and debt remained an issue.

Health care reform enabled an estimated 6.6 million young adults to join their parents' health insurance plans last year, according to a Commonwealth Fund report, though problems with medical bills and debt remain an issue.

Health reform is in such a chaotic state and will continue to be so even after the Supreme Court ruling on the constitutionality of PPACA - and the November election. This is where scenario planning can help. At the April conference for the Institute for HealthCare Consumerism, I listened to a panel on alternative planning scenarios in regard to health reform using scenario planning. Let's see how it works.

With health care reform's medical loss ratio rebate reporting starting this month, there is still much uncertainty among employers about how the rebates will work, leading to an opportunity for brokers to fill that all-important trusted adviser role.

More than half of Americans with individual market health insurance coverage in 2010 were enrolled in so-called "tin" plans, which provide less coverage than the lowest "bronze"-level plans in the Affordable Care Act, and therefore would not be able to be offered in the health insurance exchanges that are being created under the law, according to a Commonwealth Fund. The analysis suggests that once the state-based exchanges — set up to make it easier for individuals and small businesses to shop for health insurance — go into effect in 2014, many of these Americans will be able to purchase plans that offer better coverage. In addition, many will be eligible for premium subsidies that will help offset the cost of the plans.

The average cost of care for a typical family receiving health care through an employer-sponsored PPO plan in 2012 will cost $20,728, a 6.9% increase over 2011. Though this is the lowest rate of increase in 12 years, the $1,335 increase surpasses last year’s record of $1,319. This is according to the Milliman Medical Index.

The Obama administration forged ahead with health care reforms on Wednesday, announcing a November 16 deadline for state governments to submit proposals showing how they intend to operate health insurance exchanges in 2014.

In a presidential election cycle where job creation is a key issue, 15% of National Association of Insurance and Financial Advisors members surveyed recently say President Barack Obama’s health care reform law’s medical loss ratio provision has decreased their commissions enough to cause them to need to lay-off or reduce the hours of support staff in their offices — affecting an average of two employees per agency.

Aon Hewitt isn't letting health care reform dictate its business model. If anything, it's the other way around. In addition to publishing an influential report on the implications of health reform for large employers, CEO Kristi Savacool has been to the White House several times in recent months to discuss the company's retiree health care exchange and upcoming active employee exchange model. "We have been on the front line," says Savacool, "really influencing the development of health care reform, influencing our clients with respect to how they put their own health care strategies together."

Republicans on Thursday issued a politically charged report that quoted President Barack Obama's corporate advisers as predicting his 2010 health care overhaul would raise — not lower — the cost of care.

Employers continue to look to their adviser to guide them through health care reform uncertainty. In fact, 88% expect their adviser to educate them on health care reform and its implications, according to a recent survey.

Xavier University, one of the oldest Roman Catholic colleges in the United States, will cut off birth-control coverage for its employees in July, a move that has divided faculty members and students on the Cincinnati campus.

The White House was forced on the defensive on Wednesday as it sought to explain controversial remarks President Barack Obama made earlier in the week about the Supreme Court's review of his signature health care reform law.

There has been a lot of information in the news about health care reform and how it affects small businesses. Yet, I still find many business owners scratching their heads trying to understand what it all means for their businesses. To simplify matters, here are five things small employers must know about employee health benefits—especially in a post-health care reform environment:

President Barack Obama said on Monday he was confident the U.S. Supreme Court would uphold the health care reform law that has been one of the signature issues of his presidency.