No Exchanges? No Problem!
Governor Tom Corbett notified Federal officials on December 12th that Pennsylvania would not establish its own insurance exchange, but would default to a federally-facilitated health insurance exchange. Prior to that the Pennsylvania Department of Insurance had taken the lead with exchange planning. They released an extensive report in November 2011 suggesting broad support for a state-run exchange. In January 2012 the Department released a draft of proposed legislation that would establish multiple private exchanges to be overseen by the Department, however, Governor Corbett’s announcement would negate moving forward with that. As a result, the Federal government will assume full responsibility for running a health insurance exchange in Pennsylvania beginning in 2014. Private health insurers such as UnitedHealthcare and Aetna have already begun implementing programs that operate in a fashion similar to exchanges. BMC Benefit Services will continue to monitor legislation and regulations as they are issued to keep you in compliance and insured with the best carrier for you and your organization!
Based upon an article in the Insurance and Financial Advisor, following the continued implementation of the Patient Protection and Affordable Care Act (PPACA) , the market for insurers and employers in 2013 appears predictable. Insurers seem prepared to weather the next two years with stability, according to their accredited research organization, Fitch Ratings. Employers will continue to work to keep benefit rates in check, but, for the short term, rate increases are being calculated with some certainty. According to health consulting firm Mercer, employers in 2012 kept increases to 4.2%, frequently implementing health management programs. Without that action, costs would have been an average of 7.4%. Increases of 5% are expected in 2013, Mercer predicts, provided that employers continue controlling cost aspects that are within their control.
The Basics of the Employer Mandate & Penalties
For your further reference, please seethe attached primer: Basics of the Employer Mandate. It includes how to calculate if you are a ‘large employer’ and a compliance chart. Keep in mind that most of the Health Care Reform penalties are aimed at employers who do NOT cover their full time employees. If you’re currently a BMC Benefit Services client, even if you employ more than 50 and are subject to Health Care Reform, there’s a very good likelihood that you are already in compliance. Each and every BMC client will be carefully monitored as their 2014 plan renewal approaches for compliance and we’ll be sure to provide all the information that’s relevant to you. If you have any questions, please contact us.