United Parcel Service got attention by dropping some working spouses from its health plan and partly blaming the Affordable Care Act usually known as Obamacare.
But according to Kaiser Health News, UPS’s move is only one among many changes in employer health insurance, most of them having little to do with the health law.
Gannett and other employers are raising deductibles, giving workers health savings accounts that look like 401(k) plans, mimicking the health law’s online insurance marketplaces and nudging patients to compare prices and shop around for treatments.
In a recent Q&A, Kaiser correspondent Jay Hancock tackled this complicated subject. Here's one passage relevant to Gannett's argument that Obamacare was a principal factor in adopting a new, more costly plan for 2014. (Emphasis added.)
Q: The Affordable Care Act required fewer changes in employer coverage than in plans sold directly to consumers. Why are employers overhauling their benefits?
A: They cite rising costs. Although overall medical expenses are rising at the slowest pace in decades, they’re still going up at twice the rate of inflation. Some analysts doubt the deceleration is permanent.
At the same time, employers say health law requirements such as covering dependents to age 26 and banning annual and lifetime limits on benefit payouts also increase their costs. However, some analysts portray what’s going on as part of a long-term trend of employer benefit redesign that has little to do with the health law.
Gannett and other employers are raising deductibles, giving workers health savings accounts that look like 401(k) plans, mimicking the health law’s online insurance marketplaces and nudging patients to compare prices and shop around for treatments.
In a recent Q&A, Kaiser correspondent Jay Hancock tackled this complicated subject. Here's one passage relevant to Gannett's argument that Obamacare was a principal factor in adopting a new, more costly plan for 2014. (Emphasis added.)
Q: The Affordable Care Act required fewer changes in employer coverage than in plans sold directly to consumers. Why are employers overhauling their benefits?
A: They cite rising costs. Although overall medical expenses are rising at the slowest pace in decades, they’re still going up at twice the rate of inflation. Some analysts doubt the deceleration is permanent.
At the same time, employers say health law requirements such as covering dependents to age 26 and banning annual and lifetime limits on benefit payouts also increase their costs. However, some analysts portray what’s going on as part of a long-term trend of employer benefit redesign that has little to do with the health law.
"At the same time, employers say health law requirements such as covering dependents to age 26 and banning annual and lifetime limits on benefit payouts also increase their costs." You know what? I'm kind of inclined to believe them.
ReplyDeleteBasically what I see is analysts for right wing organizations say it is bad, analysts for left wing organizations say it's great. I'm not so sure it's great for the tens of thousands let go just this month and those who are learning they or their family no longer have coverage at all. I've seen a few state their premiums are down a bit for 2014, I've seen others state their premium doubled. My family is in the latter. The best way to lower medical costs is to attack the highest cost for a medical provider, which is malpractice insurance. This bill was rammed through Congress without much thought and now that folks are reading and realizing what has been done, it's not pretty.
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ReplyDeleteWalgreen dumps health insurance and 120,000 employees have to go to exchanges, Home Depot dumps health insurance and sends 20,000 employees to exchanges, UPS dumps 15,000 working spouses, University of Virginia says working spouses would cost them $7.4 million dollars so they cut them from their coverage, IBM sends 110,000 retirees to exchanges, Time Warner sends retirees to exchanges. This is serious folks
ReplyDeleteIf your insurance company drops your spouse and children you can not cover your children till they are 26. Obama care does not cover children till 26.
ReplyDeleteYou have no idea what you are talking about.
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