Health Care Reform Obamacare Juliana Thompson GBS 221
Health Insurance Topics• Obamacare• Company reactions• Possible results
“Health Insurance in America: The Insured and the Unsure” Obama Said…“IF YOU likeyour health-care plan, youcan keep yourhealth-careplan.”
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