Health Care Reform Presented by: Timothy J. Byrne Vice President.

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Presentation transcript:

Health Care Reform Presented by: Timothy J. Byrne Vice President

A change in the way health care financing is structured.  Currently 50%, those over 65 plus those under 65 who are disabled or unable to pay are covered by Medicare, Medicaid or both.  The other 50% are covered by individual or group insurance (or have no insurance).  While 45 million are without insurance on any given day, roughly half are chronically without insurance. What is Health Care Reform?

Why does the arrangement need to be changed or “fixed?” Costs are out of control.  Increasing at 2.5 times the rate of wages. At some point, given this reality, people will be working for insurance.  Health care costs will be 20% of GNP by 2019.

Why are the costs so high? There are 1000 reasons, but the single biggest reason...  We are an aging population that needs/wants more and more care  We are living longer, but not necessarily healthier.  We want and expect health providers to “fix” us.

Where is Health Care Reform Today?  It is the President’s number one domestic priority  It’s in the Senate  It’s in the House

What will Health Care Reform Look Like? (Speculative)  For groups of over either 50 or 100 employees and for individuals there will be an exchange, not unlike the Massachusetts connector.  There will likely be a public option (but it may be optional by state).  Large groups will likely be allowed to self insure or choose fully insured plans.  Benefits will be “standardized.”  There will be community rating.

What are the Chances of this Being Passed? 100% Okay, 90%  President’s Commitment  Senate Leadership’s Commitment  House Leadership’s Commitment

When Will it Take Effect?  The exchange will be up and running by 2013 or  Most other provisions should be 2014 and beyond. (Speculative)  “Public option” will begin to cause exiting of other insurance carriers by 2015 and beyond.  Private insurance will be rare by 2020.

What will be the Costs? To insure your groups, little change in the short run. The biggest change will be in corporate and individual taxes. It’s all in who you believe but...

Questions?