Health Care Reform

Moving toward provider payment models that promote cost-effective, high-quality care
 

As corporate health exchanges evolve, there are more factors to weigh

In a new online posting, the Department of Labor (DOL) reiterated that employers may not use a health reimbursement arrangement (HRA) or other means to reimburse employees for purchasing nongroup health insurance coverage, including policies available on an Affordable Care Act (ACA) public exchange.

Among the points addressed by the DOL in a set of Frequently Asked Questions posted on Nov. 6, 2014, were the following:

Despite continuing efforts to rein in rising health care costs, roughly half of large U.S. employers will begin to hit the thresholds triggering the Affordable Care Act’s (ACA’s) excise tax on high-value plans in 2018, and the percentage is expected to rise significantly in subsequent years, according to an analysis by consultancy Towers Watson.

Large U.S. employers expect a 4 percent increase in 2015 health care costs for current employees after plan design changes and a 5.2 percent rate increase without plan adjustments, according to Towers Watson’s 2014 Health Care Changes Ahead Survey.

Authors: Denise M. Visconti, Jane Ann Himsel, Darren E. Nadel, and William E. Trachman  

The Obama administration announced updates to model notices that employers must provide to employees, informing workers of their eligibility to continue health care coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Many big retailers including Target, Home Depot and Wal-Mart recently announced moves to drop health benefits for their part-time employees, claiming the move is better for workers now eligible to receive federal subsidies or tax credits under the Affordable Care Act (ACA) for policies purchased through a public insurance exchange.