Another knock-on effect of the ACA is that healthcare and hospital systems are struggling to cope with new managerial changes demanded of them. Increasingly, hospital boards want an outside perspective, along with different skill sets—and they are willing to go outside the industry to get it.
Will 2014 mark the beginning of the end for employer-sponsored health insurance as we know it? Target recently announced that it will no longer provide health insurance for its part-time employees. Trader Joe's and Home Depot also made similar moves. Why? Some experts say it’s because of Obamacare. Others are not so sure.
Right now most of the drama being generated by Obamacare has to do with the failure of the Healthcare.gov web site and the slow going in getting individual Americans signed up for insurance coverage. But make no mistake: Even though business got a reprieve in the onset of the legal mandates of the Affordable Care Act to next fall, business owners are currently in the throes of important business decisions being prompted by the new law – and by its intended, and unintended, consequences.
Recently Trader Joe’s had to tell its associates that it had to revise its health benefits in the wake of the Affordable Care Act (Obamacare). CEOs who face similar challenges in having a straight conversation on healthcare with their “crew members” (employees) should take note.
Conceding, in effect, implementation problems with the Affordable Care Act, the Obama administration is delaying enforcement of a key provision of the new health-care law that requires large employers to provide coverage for workers or pay a penalty in 2014, the biggest revision so far to the federal health-care overhaul. The knock-on effects for business may prove significant.
A new survey of major health care insurers, representing the vast majority of covered individuals in the U.S., conducted by the American Action Forum (AAF) answers the question: what impact will the Affordable Care Act (ACA) have on premiums in 2014? This survey aimed to illustrate real cases in a variety of regulatory environments, representing the spectrum of rate changes cross any given geographic area, rather merely average changes across demographics.
This lack of competition for patients has a profound effect on the quality and cost of health care. Providers typically do not disclose prices prior to treatment because they do not compete for patients based on price. Payments are usually not made by patients themselves but by third parties — employers, insurance companies or government. But according to Devon M. Herrick, Ph.D., a senior fellow with the National Center for Policy Analysis, in health care markets where providers do compete for patients, not only do prices come down, but outcomes improve.
According to Dr. Stuart Weinstein of the American Academy of Orthopedic Surgeons, we could save at least $200 billion a year from simple legal reforms.
CEOs are trying many initiatives to lower their companies' health care costs. But will it be enough?
Health care costs are soaring and employees don't want to pay, leaving CEOs with one very expensive problem.