Health Care Reform Obamacare

Juliana ThompsonGBS 221

Health Insurance Topics

• Obamacare • Company reactions• Possible results

“Health Insurance in America: The Insured and the Unsure” Obama Said…

“IF YOU like your health-care plan, you can keep your health-care plan.”

Firms Question…

• Will firms keep company healthcare?• Will firms give a stipend for private health?• Will firms make employees pay more?

Facts

• Obamacare begins January 1, 2014• Today 150 million Americans get health

benefits.• Post WWII era, tax-free employer

healthcare• Wage freeze

Facts

• Healthcare: doubled in last 10 yrs• Costs employer $15,745 a year to cover

employee with family.

Facts

• Incomes of 100-400% of poverty qualify for state subsidies

• Companies may drop coverage – the state can cover healthcare

• $2000 per person company fine

Drop Healthcare in 5 Years

• Small companies may drop medical insurance

• Small – 21%• Medium – 8%• Large – 5%

McKinsey Study

• 2011 - 30% of employers would drop insurance after 2014• If the company understands health

reform - over 50% would drop insurance

Deloitte Study

• 9% of employers will drop coverage in 3 years

Defined Contribution

• Company pays employee a fixed sum for private insurance. • Similar to fixed pension • A predictable cost for employer• Encourages workers to take control of their

own health – lose weight or quit smoking

Defined Contribution

• All companies consider this option.

• Small – 45% • Medium – 38%• Large – 32%

Workers Spend More on Health

• Overprescribing: “My insurance will cover it.”

• Mercer - 43% of employers expect workers to pay more in 2013

• 60% of Big companies willing to have employees spend more

Workers Spend More

• Large companies prefer to shift costs to workers

• Small – 43% • Medium – 59%• Large – 68%

Expectations

• Employees will become healthier to minimize costs

• Delay seeing doctor• Avoid doctor

Conclusion

• Spending more on health• Increased responsibility on health users