Cost of Prevention:Overview of the Impact of the Affordable Care Act
Cost of Prevention                    Agenda Brief History of Health Care Reform Impacts on Big Business Impacts on Sma...
Cost of Prevention          Brief History of Health Care ReformParty Platform 1912-Health Insurance for Industry          ...
Cost of Prevention              Brief History of Health Care Reform                              “The Great Society”      ...
Cost of PreventionBrief History of Health Care Reform                 3 Prong Strategy:       Improve Technology       P...
Cost of Prevention                         Fortune 500 Healthcare These organizations are central to the country’s econom...
Cost of Prevention         Effects of Affordable Care Act on Fortune 500 Companies Companies are holding off on hiring pe...
Cost of Prevention             Strategies for Lower Healthcare Costs                    Fortune 500 Companies Companies a...
Cost of Prevention                      Background Essential backbone to the American economy Increased 123%, from $5,70...
Cost of Prevention                           Benefits Health Care Tax Credit                 Preventative Care Must meet ...
Cost of PreventionBenefits Cont’d   Employer Wellness Programs      Establish a core set of interventions to increase  ...
Cost of Prevention                       World Rankings USA spends 16.2% of GDP on health care, which equals   $7,410 per...
Cost of Prevention                  European Healthcare According to WHO, France, Italy, San  Marino, Andorra, Malta comp...
Cost of Prevention                    German Healthcare System   Germany only spends 11.3% of GDP, $4,129 per capita   E...
Cost of Prevention                             Future Impacts         $174 billion                            $210 billion...
Cost of Prevention  500,000,000   FY   2010  750,000,000   FY   20111,000,000,000   FY   20121,250,000,000   FY   20131,50...
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Cost Of Prevention: Overview of Affordable Care Act and Preventive Care Costs

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A brief overview of the costs associated with preventive care costs and the Affordable Care Act (ACA)

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  • Small businesses are the essential backbone to the American economy, employing over thirty four million Americans According to the Department of Health and Human Services, over the past decade, the average annual family premiums for workers at small firms have increased 123%, from $5,700 in 1999 to $12,700 in 2009. This caused the percentage of small businesses offering health plans to drop from sixty five percent to fifty nine percent. Small Businesses lack buying power The Affordable Health Care seeks to address the problems for small businesses and expand coverage to millions more Americans who are employed through small businesses.
  • Requirements: 1.The employer must cover at least fifty percent cost of a single (not family) health care coverage for each employee2. The business must have fewer than 25 full time employees*3. Those employees must have average wages of less than fifty thousand a year-Small businesses meeting those requirements currently receive a 35% tax credit but in the year 2014 the credit will increase to 50%Exchanges: -Through Affordable Insurance Exchanges, small businesses will have the buying power of large companies to be able to get better rates and coverage for employees. -Exchanges will offer more choices of plans to meet certain benefits and cost standards. -Small businesses will benefit from this through lower administrative costs compared to the administrative costs today because they will be able to pool together. -Also they will benefit because there will no longer be limits on insurance ratings based on an employee’s health, which will help to lower insurance premiums. -The exchange promotes competition among insurance companies to also help lower the cost of insurance.Preventative Care:Services include cholesterol, diabetes, and blood pressure screening, immunizations, many cancer screenings, flu and pneumonia shots, and much more. 69 million workers reporting missed days due to illness each year Causes decreased productivity in the workplace from a missing employee, increased work load from a faulty substitute, and sick pay. Healthier Employees = Healthier BusinessIncreased productivity ( labor and creativity) and efficiencyReporting: This act now requires insurance companies to report where each dollar of the premiums are being spent and requiring that 80% of premiums be used directly to health care costs for each individual.
  • Wellness Programs:Based on the employee needs, companies will establish a core set of three to five interventions from an available menu of options that include environmental support for targeting physical activity, nutrition, tobacco use, and program mix up (coaching and education). Not currently available in entire U.S., only 7 regionsCosts:The only financial cost out will be the maintenance of the business wellness programs for the employees This cost should be weighed against the benefit of healthier employees on lower premiums, higher productivity, and less missed days due to illness. As stated earlier Small business are still not required to provide insurance to employees and unlike large companies, they will not be levied a fine for not doing so Even gives up to 50% of health insurance premiums
  • Cost Of Prevention: Overview of Affordable Care Act and Preventive Care Costs

    1. 1. Cost of Prevention:Overview of the Impact of the Affordable Care Act
    2. 2. Cost of Prevention Agenda Brief History of Health Care Reform Impacts on Big Business Impacts on Small Business Europe and Health Care Impact on Debt
    3. 3. Cost of Prevention Brief History of Health Care ReformParty Platform 1912-Health Insurance for Industry “Socialized Medicine” Committee on Economic Security Social Security Act of 1937
    4. 4. Cost of Prevention Brief History of Health Care Reform “The Great Society” Medicare / Medicaid added to Social Security Act July 1965 CHIP- Medicare / Medicaid ImprovementPrescription Reform for Seniors - Medicare / MedicaidImprovement
    5. 5. Cost of PreventionBrief History of Health Care Reform 3 Prong Strategy:  Improve Technology  Prevention of Chronic Diseases  Market Structure to increase competition
    6. 6. Cost of Prevention Fortune 500 Healthcare These organizations are central to the country’s economy Provide coverage for millions employees and millions of dependents and retirees Large companies rely on competitive bidding Firms have developed explicit strategies to promote the shift to managed care Influential models for other purchasers of health care( Small and medium-size employers, as well as public purchasers) Current Healthcare cost is 7% of Total Revenues for Fortune 500 Companies
    7. 7. Cost of Prevention Effects of Affordable Care Act on Fortune 500 Companies Companies are holding off on hiring permanent workers They are hiring in temporary workers via temp agencies Companies are unsure how much Obama Care is going cost per each employee Healthcare forecasted to rise by 10 over the next couple of years Rising healthcare cost slows down hiring and is some cases results in layoffs
    8. 8. Cost of Prevention Strategies for Lower Healthcare Costs Fortune 500 Companies Companies are investing in workplace wellness programs Programs reduced personal healthcare costs, most commonly because of fitness center discounts and free preventative screenings Employers who invest in wellness programs see increased employee retention, attendance, and productivity Improved health has proven to be a win-win for each party involved, as the best way to reduce rising health care costs
    9. 9. Cost of Prevention Background Essential backbone to the American economy Increased 123%, from $5,700 in 1999 to $ 12,700 in 2009 (U.S. Dept of Health and Human Services) Affordable Health Care Act seeks to address problems for small businesses Still does not require small businesses to provide health care coverage
    10. 10. Cost of Prevention Benefits Health Care Tax Credit Preventative Care Must meet requirements 69 million workers reporting Currently 35%, In 2014 missed days due to illness each increases to 50% year (U.S. Dept. of Health and Human Services) Exchanges Increased buying power Healthier Employees = Pooling power Healthier Business No limits on insurance  Increased Productivity and Efficiency of employee work Lower premiums and coverage costs
    11. 11. Cost of PreventionBenefits Cont’d  Employer Wellness Programs  Establish a core set of interventions to increase employee healthCosts  Maintenance of the business wellness programs for the employees  Should be weighed against benefits 
    12. 12. Cost of Prevention World Rankings USA spends 16.2% of GDP on health care, which equals $7,410 per capita USA ranks 37th in overall health system performance and overall efficiency (according to the WHO) Nearly 50 million people are uninsured in the United States
    13. 13. Cost of Prevention European Healthcare According to WHO, France, Italy, San Marino, Andorra, Malta comprise the top 5 best health care systems in terms of performance and efficiency Health Insurance in most EU countries is not a choice, it is mandatory by law!! “Le Santé d’abord” philosophy
    14. 14. Cost of Prevention German Healthcare System Germany only spends 11.3% of GDP, $4,129 per capita Everyone is required by law to have a health insurance plan You can choose between: 1) Allgemeine or Ersatz Krankenkasse or 2) Private Krankenkasse Employer and Employee split the cost (employee portion automatically gets taken out of paycheck) Higher quotes for privately insured employees but better perks
    15. 15. Cost of Prevention Future Impacts $174 billion $210 billion Diabetes CVD High Blood Pressure $93.5 billion$147 billion
    16. 16. Cost of Prevention 500,000,000 FY 2010 750,000,000 FY 20111,000,000,000 FY 20121,250,000,000 FY 20131,500,000,000 FY 20142,000,000,000 FY 2015 and each FY thereafter
    17. 17. Cost of Prevention
    18. 18. Questions

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