Healthcare reform

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.

Although the entire HR/benefits industry is waiting for the Supreme Court to rule on the constitutionality of the Patient Protection and Affordable Care Act later this month, 86% of single employers and corporations will or are likely to continue to provide health coverage to their employees in 2014, according to the International Foundation of Employee Benefit Plans.

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.

UnitedHealth Group Inc, the largest U.S. health insurer by market value, said it would maintain the health coverage protections included in President Barack Obama's health care law regardless of how the Supreme Court rules on the legislation.

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.

Employers believe that the Supreme Court will overturn the individual mandate in the Patient Protection and Affordable Care Act, but will allow different provisions to remain in the law, according to a recent survey.

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.

On March 19, the Departments of Labor, Treasury, and Health and Human Services jointly issued FAQs addressing the new summary of benefits and coverage requirement under the Patient Protection and Affordable Care Act. Although the agencies released final regulations only a few weeks prior, the FAQs provide additional guidance and clarification.

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.

Pharmaceutical companies, which were spared some of the more sweeping regulations in President Barack Obama's health care overhaul, could come under more pressure if the U.S. Supreme Court strikes down part or all of the 2010 law.

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.

President Barack Obama's health care overhaul law contains a slew of new tax provisions, and their fate is unclear as the Supreme Court weighs the law's constitutionality.

The Department of Health and Human Services has awarded a total of $181 million in grants to assist six states in establishing health insurance exchanges under authority of the Patient Protection and Affordable Care Act.

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.

Health insurers are on the hook for an estimated $1.3 billion in rebates by August of this year, if they were not in compliance with the Medical Loss Ratio provision of the Patient Protection and Affordable Care Act for 2011, according to analysis by the Henry J. Kaiser Family Foundation.

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."

Next month, the Supreme Court is expected to hand down its opinion regarding the individual mandate contained in the Patient Protection and Affordable Care Act. Their ruling on the constitutionality of requiring every American to purchase health insurance may affect how health reform moves forward. But, one thing the ruling will not significantly alter, in all likelihood, is the development of state-run health insurance exchanges. That's because regardless of the individual mandate, employers and individuals will still be looking for a vehicle that provides affordable health insurance that meets their needs - and exchanges may indeed be the answer.

The last week of March was a busy one here at EBA HQ. With the Supreme Court hearing oral arguments on the constitutionality of health care reform's individual mandate in our own backyard, EBA couldn't miss the opportunity to head down to Capitol Hill to check out the scene for ourselves - and bring you the latest news on the proceedings in the process.