Maybe we should call in Long Island Medium, Theresa Caputo.
She could channel dead health plans and ask for an inside scoop.
The Urban Institute is the latest entity to throw its prediction in the ring regarding the impact of health reform’s Affordable Care Act (ACA).
The October report released by the nonprofit research organization specifically focused on ACA’s effect on American businesses.
Its results are rosier than previous guesstimates.
Earlier Doom and Gloom
The biggest prophet of doom took the shape of a 2011 report released by consulting firm, McKinsey & Company.
The report from a survey of over 1,300 employer sponsors of health plans stirred up controversy when it reported ~
30 percent of employers would drop health coverage
Other organizations had a different view.
- The Robert Wood Johnson Foundation asserted employers need health plan benefits to remain competitive
- The Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) expect ACA will mean a small reduction in employment-based insurance
- CBO projections of ACA’s impact are 3 to 5 million fewer people will have coverage through their employers
- A 2012 survey of nearly 600 employers by consulting firm Deloitte reveals only 9 percent of the companies plan on dropping health coverage
Stuck in the Middle Again
The Urban Institute’s report suggests employment-based health insurance may actually increase.
- Large employers – ACA’s impact on employer-sponsored coverage would be a wash for companies with over 1,000 employees
- Small business – ACA would actually reduce the cosr of coverage per person for small businesses (100 or fewer employees)
- Mid-size companies - (101-1,000 employees) would have higher per person costs
Calculations based on an assumption that ACA became effective in 2012, the Urban Institute estimated overall employer-sponsored health coverage would have increased 2.7 percent.
So, which is it?
- Will employers drop health coverage?
- Or hang in there a bit longer?
If Theresa isn’t available. maybe a crystal ball could give us some answers.
Do you have health coverage through your employer?
What’s the buzz around the water cooler?
Notice of Disclaimer –Cathy Miller is not an attorney or health care provider and cannot provide legal or health care advice. The information provided is for your general background only, and is not intended to constitute legal or health care advice as to your specific circumstances. We recommend you review legislation with legal counsel and visit your physician for health care issues.