We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byCody Thomas
Modified over 4 years ago
© 2010 Towers Watson. All rights reserved. Adult Dependent Coverage Under the Affordable Care Act of 2010: An Employer Perspective Alliance for Health Care Reform Briefing Roland McDevitt May 24, 2010
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 2 Affordable Care Act of 2010: Key Issues for Employers Young adults will be eligible for parents plans until age 26 Regardless of whether they are working and have an offer of coverage Regardless of whether they are students Regardless of whether they are married Applies to first plan year beginning after September 23, 2010 For most employers this will be the 2011 plan year Transition rules allow a three year period (2011, 2012 and 2013) during which employer plan may withhold eligibility if young adult is offered coverage from own employer
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 3 Considerations for Employers What is the cost impact of simply extending eligibility? Administrative issues Dental and vision are not mandated – should employer extend eligibility along with medical coverage or create separate eligibility rules, processes and communications? Many retiree medical plans are administered together with the plans for active employees. Do these retiree medical plans need to be separated in order to avoid this regulation for the retiree plan? COBRA will apply to all of these adult dependents (could remain in plan after age 25) Require young adults to take coverage elsewhere when offered? Administrative systems are not in place
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 4 Percentage of Large Employer Plans Covering Children by Age of Child and Student Status Note: Many employer plans also include provisions that coverage is lost if the adult child is married or working full-time. Source: Towers Watsons Employee Benefit Information Center.
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 5 Current Coverage Categories for Americans with Employer-Sponsored Insurance
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 6 Back of the Envelope Estimates of Cost Impact to Employer Plans Baseline3 Scenarios for Influx of Young Adults Expense (in Millions) EnrollmentPremiumTotal Premium (millions) Enrollment Up 25% Enrollment Up 50% Enrollment Up 100% Adults6,900$5,000$34.5 Children3,100$2,500$7.8$8.0$8.2$8.6 Total$42.3$42.5$42.7$43.1 % Increase.5%1%2%
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 7 Factors That Will Influence Take-up Rates Other alternatives available to young adults Coverage from own employer Medicaid in 2014 Purchase through individual market or exchange Decline coverage and purchase through the exchange when need arises How the employer prices coverage Most employers have only three or four coverage tiers today Employee only Employee + Spouse Employee + Child(ren) Family Many are considering one or more additional tiers If young adults can obtain free coverage through parents plan, then why not?
towerswatson.com © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 8 Bottom Line For most employers, this is not viewed as a critical issue Financial impact viewed as 1% or less Those who employ young adults may realize some savings if pricing of parents plan is attractive Could have significant effects for some employers Administration and compliance are significant concerns for many employers Will young adults come back to free coverage in parents plan? Employers will need to consider level of employer premium subsidies for dependents additional premium tiers generosity of plans offered
Alliance for Health Reform Briefing on the Crowd-Out and the State Children’s Health Insurance Program Presented by Janet Trautwein, Executive Vice President.
Solutions for a Superior Workplace Health Care Reform What are my options? Presented by: Patrick Pennefather, CLU, ChFC, CEBS, LUTCF Client Manager David.
The Brave New World of Health Benefit Exchanges (Resistance is Futile: Ready or Not, Here Comes Covered California)
Open Enrollment Required Notices September 13, 2011.
American General Life Companies FOR PRODUCER USE ONLY-NOT FOR DISSEMINATION TO THE PUBLIC 1 February 2013 Big Changes for Small Businesses Jay Drucker,
Cover All Kids Health Insurance for All Children Pennsylvanias Success Story – How Can It Help Your State?
Copyright © 2010 by the American Academy of Actuaries What Is Actuarial Value? Cori E. Uccello, FSA, MAAA, MPP Senior Health Fellow American Academy of.
Federal Financial Support for State Health Reform Implementation Edwin Park Center on Budget and Policy Priorities From Vision to Reality: State Strategies.
The Impact of Health Care Reform on Business National Association of Health Underwriters September 8, 2010.
Medicaid and CHIP: On the Road to Reform Cindy Mann, JD CMS Deputy Administrator Director Center for Medicaid, CHIP and Survey & Certification Centers.
Implementation Issues for Employer Plans Steve Wojcik Vice President, Public Policy National Business Group on Health Washington,
CHIP Children's Health Insurance Program
THE COMMONWEALTH FUND Affordable Care Act of 2010: Major Provisions and Implementation Timeline Sara R. Collins, Ph.D. Vice President, Affordable Health.
Implementing Health Care Reform Grandfathered Plans, New Consumer Protections and Whats on the Radar Screen National Association of Health Underwriters.
Health Care Reform The Road Ahead August 19, 2010 Ardas Khalsa, Medicaid Coordinator Texas Department of State Health Services.
THE COMMONWEALTH FUND Rite of Passage: Young Adults and the Affordable Care Act of 2010 Sara R. Collins, Ph.D. Vice President, Affordable Health Insurance.
KaufCAN.com ACA Update Focused on the Employer Mandate Final Regulations Shenandoah University Business Symposium March 25, 2014 John M. Peterson Kaufman.
NH Insurance Department NH Research and Evaluation Group October 21, 2013 Tyler Brannen Health Policy Analyst.
DEERS/RAPIDS Retirement Brief Agenda Retiree ID Card Categories Dependent Children Former Spouse DEERS Updates Tricare Reserve Select Acceptable.
THE AFFORDABLE CARE ACT September 17 th, 2013 Heather Howard Director, State Health Reform Assistance Network Lucinda Jesson Commissioner, Minnesota Department.
© 2018 SlidePlayer.com Inc. All rights reserved.