Business & Tech

Employers Should Evaluate Impact Of Supreme Court Health Care Decision

Human resources expert Wayne Rigney, who is gathering information on implementation ramifications, says now is the time for analysis and planning.

 

Editor's Note: The 193-page Supreme Court decision on the Patient Protection and Affordable Care Act is posted with this article and there are links at the bottom for additional information for employers as they plan for healthcare reform.

As the about the recent , also known as Obamacare, Wayne Rigney, a human resources expert from of Madison, CT said business owners need to start planning for how the decision will affect their company, if they haven't already.

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"It mainly will affect businesses that have over 50 employees, but there definitely will be a big impact," Rigney said Friday.

Some businesses planning already, decision removes some uncertainty

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Rigney pointed out that some business may have already started that planning process, but that the Supreme Court decision takes at least some of the uncertainty out of the process.

He said many businesses are looking for information about the practical aspects of implementation, which he is gathering, along with details about how the Supreme Court decision Thursday may affect specific aspects of implementation.

"The main thing is that, agree with it or not, it was ruled constitutional. That removes some of the uncertainty," he said. "My guess is that many businesses ignored it and now they are realizing they will have to deal with it."

Society of Human Resource Management provides these tips for employers

Rigney cited this information, provided by the Society of Human Resource Management:

While the individual mandate was deemed by a majority of the Court to violate the Commerce Clause and the Necessary and Proper Clause of the Constitution, it was ruled constitutional because Congress has the authority to impose a tax on individuals who go without insurance.

Key steps employers need to take:
1. Determine the strategic implications of whether or not to offer a plan. Health benefits are just one part of an overall total rewards strategy. How does an organization’s having (or not having) health benefits impact other talent acquisition and talent management strategies?
2. Review the Supreme Court decision as to its impact on your organization.
3. If a plan is offered, perform a qualitative analysis on whether it makes sense to remain a grandfathered plan or become nongrandfathered by examining the seven PPACA provisions that apply only to nongrandfathered plans.
4. Perform a qualitative analysis to determine if existing plans meet qualifying eligibility and affordability standards. In order for employers to avoid potential penalties, ensure that any health plans offered meet both standards.
5. Determine the true organizational costs of either offering or not offering health coverage after 2013. For many organizations, this is not the "no-brainer" that it may first appear.
6. Perform a quantitative analysis to project the so-called "Cadillac tax" set to begin in 2018.

The Society for Human Resource Management provided this webpage on different aspects of healthcare reform and how it will affect businesses.

In June 2011, McKinsey & Co. provided this report on how U.S. health care reform will affect employee benefits.

US health care reform sets in motion the largest change in employer-provided health benefits in the post–World War II era. While the pace and timing are difficult to predict, McKinsey research points to a radical restructuring of employer-sponsored health benefits following the 2010 passage of the Affordable Care Act.

The McKinsey & Co. report has a specific sidebar on how the U.S. heath care act will affect coverage options for employers.

Here are some links from the Connecticut Business & Industry Association on the heathcare ruling:

Officials from the Connecticut Business and Industry Association were ... measured in their reaction [to the Supreme Court decision} ... "I don't know if that's a good thing or a bad thing," said Joseph F. Brennan, senior vice president of the CBIA, said of the court's ruling. ... "It doesn't really address cost sufficiently. It doesn't really address quality sufficiently. It's really just about reducing the number of uninsured," he said ... But with health care advocates projecting that Connecticut's Medicaid rolls could grow by as many as 130,000 people by 2016, the potential risk of a system that lacks adequate cost controls looms large, he said.



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