Amid the ObamaCare Supreme Court decision watch, the Department of Health and Human Services announced the initial calculations of medical loss ratios (MLR) for the nation’s insurance companies. Under the Patient Protection and Affordable Care Act, insurers must spend at least 85% of their premium income on paying benefits (80% in the individual and small
Health Care
Skyrocketing Healthcare Costs Continue to Threaten Healthcare Markets
This post was coauthored by Inna Shelley.
Princeton economics professor, Uwe E. Reinhardt, recently posted an interesting article on the New York Times “Economix” blog entitled “The Fork in the Road for Health Care.” The post discusses the seeming inevitability of healthcare rationing and attributes rising healthcare costs under employer-provided health policies to rising healthcare…
Interesting background piece on savings options for health costs
It would be a good use of resources to make the current savings options for paying health expenses more effective and more coordinated.
Continue Reading Interesting background piece on savings options for health costs
New CBO JCT Analysis of Affordable Care Act’s Impact on Employer Provided Health Insurance
If employers (especially small employers not subject to employer penalties) simply get out of the health care business without increasing their pay rates the anticipated offsets for higher income and payroll taxes simply will not occur and the deficit will increase.
Continue Reading New CBO JCT Analysis of Affordable Care Act’s Impact on Employer Provided Health Insurance
CBO Issues New Cost Estimate for ObamaCare–$1.762 Trillion over 10 years
Shortly, CBO will release an extensive analysis conducted with JCT of the incentives for firms to offer or not offer health insurance under the ACA, as well as a range of estimates of sources of coverage and federal budgetary outcomes that would result from the ACA under alternative assumptions about employers’ behavior.
Continue Reading CBO Issues New Cost Estimate for ObamaCare–$1.762 Trillion over 10 years
HHS Health Insurance Exchange Regulations Made Public
HHS has made its final (in some cases “interim final”) Exchange regulations under the Patient Protection and Affordable Care Act (“PPACA”) public. They are to be formally published in the Federal Register on March 27. The 644 pages of the HHS Regulations Final Rule on Health Plan Exchanges 032712.pdf cover standards for states to follow…
Health Savings Accounts Growing More Popular
A new report issued by the Employee Benefit Research Institute shows that Health Savings Accounts (HSA’s) and Health Reimbursement Arrangements (HRA’s) grew in popularity in 2011. Paul Fronstin, “Health Savings Accounts and Health Reimbursement Arrangements: Assets,
Account Balances, and Rollovers, 2006–2011,” EBRI Issue Brief, no. 367, January 2012. The report shows that the number of…
Some IRS activity for employers to note
The Internal Revenue Service had some activity this past week that employers should keep an eye on. One was a new “Tax Gap” study, which analyzed the 2006 tax year. It found that overall compliance was statistically unchanged from 2001. Initial compliance was slightly better, but within the statistical margin for error, while payment…
Analysis of Medicare’s Effects on the overall Health Care System
A recent Reason magazine article by Peter Suderman on Medicare’s Whac-a-Mole approach to cost control is both an excellent analysis of why Medicare is in trouble and an explanation of one of the reasons we are having so much trouble in the rest of the health care system. As employers trying to do the best…
Problems for Employers figuring out PPACA
Last week, I was asked to write about our firm’s efforts to figure out what to do about our health insurance and health care program as we prepare for the effective date of the Patient Protection and Affordable Care Act. The result was published in the Washington Post here. The bottom line is that…