I played chess a fair amount when I was younger, and was good but never great at it. The part of the game that I always appreciated was how, as pieces moved or were eliminated from the game, the dynamics could radically change. One minute, you’re on the offensive and feel like you’re winning. Two moves later, your suddenly retreating into defense and possibly losing. Sometimes the pace is swift; other times, it’s slow and deliberate.
Health Reform has been and continues to feel like chess, and those of us at WGA continue to follow events like a massive game with serious consequences.
In November, Republicans took back control of the House and introduced as House bill #2 an effort to repeal the Patient Protection and Affordable Care Act. The bill passes with unanimous Republican and some Democratic support. (Black knight moves). Sen. Harry Reid refuses to introduce the Read more…
The Boston Globe ran a front page article last week explaining some new health plans that are being implemented as a means to control health costs. These plans are known as tiered or limited network plans that require a deductible if an employee wishes to be treated at these designated high cost facilities. The purpose of the plans is to drive employees to the lower cost facilities; however, employees can choose the higher cost facilities should they agree to pay the deductible associated with these providers or hospitals.
Typically, the deductibles for these plans can range from $500 to $2,000 per visit. These plans are different from the high deductible plans that have been available for a number of years. The high Read more…
With all of the media coverage surrounding the new Republican majority in House’s effort to repeal the Patient Protection & Affordable Care Act (“PPACA”), a great deal of information is lost in the noise surrounding the debate. Depending on your preferred news source, the PPACA is either a necessary step being taken to address the healthcare system in the US or it is a “job killing machine” that is unconstitutional and unwanted by the American people. As with most arguments of this sort, the truth lies somewhere in the middle of all of the shouting and rhetoric.
According to the center-right public policy institute, the American Action Forum, 695,000 jobs will be saved if the PPACA is repealed. According to the same group, repeal of the PPACA would reduce the federal budget deficit by $280 billion. That is in direct conflict with the non-partisan Congressional Budget Office. The CBO claims that a repeal would add Read more…
I had the opportunity today to enjoy lunch with Senator Scott Brown and a small group of industry colleagues. We spoke for over an hour on many different topics, and I found the Senator well-informed, passionate in his convictions, and committed to push for issues that he believes will get the country back on track and begin to create jobs. We spent much of the time discussing the poorly developed law that has come to be known as PPACA, Health Care Reform or ObamaCare. The flaws are deep and the implications significant to businesses and our economy. Senator Brown, as well as other lawmakers I spoke with, are troubled by the projections that the law does little to help employers or the costs of healthcare.
We discussed the recent success of the 1099 repeal, a part of the law that no one is taking ownership for, but was stuffed in to PPACA late to increase tax revenues from businesses to help fund the plan. Read more…
Today in Florida, U.S. District judge Roger Vinsin ruled on behalf of plaintiffs in a 26 state lawsuit that the Health Care Reform law unconstitutional. This ruling goes beyond the Virginia ruling which focused solely on the constitutionality of employer mandate and whether the government over reached its authority of requiring citizens to purchase a product. Vinsin expanded on that ruling and explained that because the individual mandate is unconstitutional, and more importantly, that the mandate provision is not severable from the rest of the law, he declared the entire law unconstitutional. This is a much more sweeping ruling than had been expected. He however, stopped short of stopping the law from going forward.
Vinson’s ruling will most likely be appealed to the U.S. Court of Appeals in Atlanta and ultimately to the U.S. Supreme Court. There is also an appeal scheduled for the Virginia ruling in May.
Connect with Christopher Nadeau on LinkedIn.
Originally scheduled for January 12th, but now delayed due to the tragic events in Tucson, the new Republican-controlled House of Representatives will soon vote to repeal the new Healthcare Reform law. With the Senate – and the Presidency – still under Democratic control, this politically charged vote will most likely pass, but ultimately will be viewed as little more than the GOP keeping their mid-term election campaign promise to “repeal and replace”. The Republicans will, however, begin the fight over the funding of the healthcare program and their defunding efforts may have the effect of delaying or watering down key aspects of the law.
With their new found power, it is now incumbent on the Republicans to put forward their vision of healthcare reform which generally consists of fostering increased competition and choice. And as expected, the Obama administration has already begun to develop a counter-strike strategy, directing the Department of Health and Human Services to prepare a detailed outline of national and state-by-state repercussions if repeal succeeds.
While the specter of another partisan round of politics on health care should discourage us all, it’s unlikely that compromises will be quickly reached. As a result, the law will be in a fluid state over the coming years and employers and individuals alike will be in continuous need of guidance and advice.
In a recent study, the Commonwealth Fund looked at access to care, out-of-pocket costs, and plan administration in 11 countries. In comparison to other developed nations, the U.S. fell short in all three areas, particularly where costs were concerned.
According to the study, 35% of Americans incurred at least $1,000 in out-of-pocket expenses within the last year. In addition, 20% had trouble paying their medical bills, and 33% avoided care altogether because it was too expensive. Read more…
A federal judge in VA declared “the individual mandate” unconstitutional yesterday. “The Individual Mandate” is a component of the Health Reform bill that requires each American citizen to carry health insurance by 2014. The passage of the landmark Health Reform Bill earlier this year has resulted in close to 20 lawsuits around the country. This recent ruling by the Honorable Henry Hudson, however, is especially noteworthy as it is the first by a federal judge. The lawsuit was supported by a VA state law that was passed in anticipation of the health reform bill that made it unlawful to require its citizens to purchase health insurance. The US government’s position is that virtually every citizen is in the health care system. Even if they do not have health insurance coverage currently, they eventually need medical care at which point they become part of the health care system. Both sides acknowledge that this will likely end up in front of the Supreme Court prior to the year 2014 when the individual coverage component will become effective.
Just when the concept of “grandfathering” seemed clear - there is always some nuance to keep us all on our toes. Grandfathering a plan means to basically keep it the same, and in doing so, the employer gets to avoid certain mandates of the national healthcare reform law. In some cases grandfathering is meaningful to employers and in some cases it is not. More than anything, the opportunity to grandfather a plan seems to provide more of a transition period to the Affordable Care Act than a long-term solution. A survey released by Hewitt recently suggested that nine out of ten employers expect to lose grandfather status. But still, if there is interest in the marketplace to do this, we need to be clear on the circumstances under which a plan can be grandfathered. Indeed, the law outlines permissible changes Read more…
As I woke up the Wednesday after the 2010 midterm election, I thought that it won’t be long before someone asks, “So, what do you think is going to happen to the health care reform act?”
In our business, we are taught to avoid discussing politics (among other taboo topics), but the impact of government actions are unavoidable. Clients turn to us every day for advice on COBRA, cafeteria plans, flexible spending accounts and many other benefit issues that involve legislative and regulatory decisions. The Patient Protection and Affordable Care Act (PPACA) is one of the biggest to happen in my career, if not the biggest. “So what’s going to happen?” Read more…
I played chess a fair amount when I was younger, and was good but never great at it. The part of the game that I always appreciated was how, as pieces moved or were eliminated from the game, the dynamics could radically change. One minute, you’re on the offensive and feel like you’re winning. Two moves later, your suddenly retreating into defense and possibly losing. Sometimes the pace is swift; other times, it’s slow and deliberate.
