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    Healthcare Reform – It’s Official (Right?)!

    By:  Steve Migliaccio, VP of Product Management, Workscape

    The ink is dry and it is official, healthcare reform is law. Now that the historic moment has passed and the cheers and jeers have died down a bit what does this all mean? From the nightly news we have heard the many senators and states declare that the battle is not over, and we know that whole process called reconciliation still needs to happen, but what do we need to start thinking about (and doing) today?

    Follow up:

    First off, we should be looking at the things that are effective “immediately”, and how immediate those items really are. Some items will impact you right away (the changes to the taxation of Medicare RDS may impact your books this quarter) while others will depend on when your plan year begins (dependent eligibility changes will impact plan years beginning six months or later after the enactment of the law). Regardless of when your plan year begins you will definitely want to start thinking about your game plan now. Sure, there are changes you will have to make, but don’t lose sight of the opportunity to make strategic shifts to maximize the value of your plan.

    So let’s start thinking strategically. Wellness programs are looking pretty good right now with the new higher incentives. Over the long term you may need to rein in those “Cadillac” plans, so this may be a key area to increase the perceived value of your benefits package while other areas may be trimmed down.

    On the other hand, your recent strategy to reduce cost may have included HDHPs, HSAs, and other savings vehicles. With eligible expenses shrinking, penalties growing, and new lower contribution maximums these savings vehicles may lose their appeal. Some have even gone so far as to say health care reform may be the death of the HSA.

    There is definitely a lot to think about here. With big changes in store, this is a pivotal time to decide if your organization can recognize, and seize, those opportunities that are revealed.

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