No matter where you turn, people are talking about health care reform or health insurance reform. The big question on most employers’ minds is how the recently passed health care legislation will affect their businesses.
“Employers are asking a lot of questions and not getting any concrete answers,” says Albert Ertel, chief operating officer of Alliant Health Plans.
The uncertainty has made it difficult for employers to develop a plan of action, but Ertel says staying informed will help keep them prepared for whatever happens.
Smart Business spoke with Ertel about how unintended consequences of health care reform could affect cost and quality of care and what you can do about it.
What has been employer feedback on health care reform so far?
The 2,000-plus pages within the Patient Protection and Affordable Care Act (PPACA) is the law of the land, but there is no one place employers can go to get answers. The questions employers have been asking about the PPACA are designed to shed some light on some simple but very important issues that may impact their business both immediately and in the future.
- Do I need to change my health insurance plan and when?
- What will it do to the rates I am paying?
- How will it affect my employees and their families?
Fear of the unknown and contradictory government statements have led some to false beliefs. Some people have been acting under the assumption that if they have a plan in place today, they need not do anything. That is not necessarily the truth.
What are some potential unintended consequences of the reforms?
The regulations that are slowly dribbling out will generate rules that may end up having a number of unintended consequences. They include but are not limited to the following:
- Increased insurance costs
- Increased utilization of emergency rooms
- Exacerbation of physician shortages
- Government focus on cost cutting that affects access and quality
- Reduced R&D (lower margins will lead to cuts in all areas of health care)
- Private insurers having to follow government guidelines
- Increased ‘medical tourism’ — sending patients overseas for elective procedures
