Healthcare Reform

Healthcare Reform – What Employers Are Expecting

Employers' concerns about rising healthcare costs are creating the need for a serious review of health plan offerings. And with healthcare reform, even more plan changes are on their way. Fortunately, Humana is here to help you understand your options from the ones that know business best – other employers.

What others are saying

With the passage of the Affordable Care Act (ACA), healthcare costs continue to pile up for employers. This year's Towers Watson survey of U.S. employers shows:

• The estimated healthcare cost trend of medical and pharmacy rates is expected to rise by 8.2% in 2011
• 85% said they plan to raise medical or prescription drug plan premiums for active employees in 2011
• 59%, more than half, expect to make significant or moderate plan design changes in 2011
• 67% are actively planning significant or moderate plan changes in 2012

The state of the workplace

For employers, the task of managing premium cost-sharing is not simple. And with employees who vary widely in income and health, it gets even harder to predict what's in store. In 2014, for example, employers could be penalized if they have employees whose coverage is subsidized through state insurance exchanges because their premiums exceed a percentage of their household income.

On the other hand, the same employers could be required to fund "free-choice" vouchers that let employees buy exchange-based coverage at the expense of the employer.

And that's just one example of how complex managing healthcare reform can be for your company.

What you can do

In the face of this reform and the changes it brings, employers might find themselves frustrated and confused. But by preparing yourself and your organization with information, you can manage healthcare reform successfully.

According to the Towers Watson survey, some companies are already taking steps to inform and educate themselves on healthcare reform:

• Consider healthcare reform in the context of your total business
• How can healthcare reform impact your business on a macro and microscopic level?
• Keep up with final regulations, as well as those that go into effect in the meantime
• Take a long view, but take short-term steps now
• How does healthcare reform affect the business financially in the long term? How do the healthcare costs affect my employees right now?
• Keep up with your numbers. They may change over time.
• Keep a close eye on your business' healthcare costs and monitor them for increases or decreases
• Balance cost-sharing tactics with other options
• Evaluate your retiree medical strategy
• Pensions? Retirement benefits? Coverage? Consider it all.
• Don't assume that any provisions will go away
• It's best to plan for the current law. If it happens, you're ready. If not, you can change your plans.

Where it stops, nobody knows

As with all things in American politics, there are no guarantees. The recent mid-term elections changed the political landscape in Washington, even from what it was when healthcare reform was passed. With fresh faces in Congress, come fresh ideas. Fresh ideas could mean new plans and new changes.

The best thing you can do to protect your employees from this kind of uncertainty is to stay informed. Keep on top of the latest healthcare reform news by referencing websites such as the Kaiser Family Foundation or the George Washington University and the Robert Wood Johnson Foundation.