Federal Healthcare Reform: Major Provisions & Impact on Employers. Michigan Chamber Board of Directors Meeting April 28, 2010 Presented by Wendy Block, Director of Health Policy & Human Resources Scott Norman, Senior Director of Insurance Services. Overview: Healthcare Reform.
Federal Healthcare Reform: Major Provisions & Impact on Employers
Michigan Chamber Board of Directors Meeting
April 28, 2010
Wendy Block, Director of Health Policy & Human Resources
Scott Norman, Senior Director of Insurance Services
Employer Penalties, cont’d:
Very small employers, sole proprietors, and sub contractors such as hair dressers and real estate agents may benefit from this bill.
State exchanges will provide sole proprietors better options to purchase health insurance on a guaranteed issue basis.
Tax credits may provide an incentive for small business owners to continue to provide health insurance to employees.
The insurance division will be impacted by this bill; however, the impact is very difficult to predict at this point.
Most of the pressure will be on groups with less than 50 FTEs who may choose to drop benefits and allow employees to purchase coverage in the exchange.
Agents will be allowed to sell in the exchange, but at this point it is unclear what the potential revenue will be for agents.
Groups with more than 50 FTEs will face penalties if they drop coverage and we feel as if many of these employers will continue to provide benefits.
Over 75% of the revenue of the insurance division currently comes from larger groups and ancillary benefit programs such as VSP and Delta Dental.
Despite the fact that a number of small employers may drop benefits, the revenue from larger groups and increase in our ancillary benefit programs should minimize the impact.
The ancillary benefits program is marketed through outside agents and continues to grow – VSP plan currently has nearly 10,000 enrolled and in just over 2 years the Delta Dental plan has over 2,000 enrolled.
In addition, to further offset potential losses in group benefits, we have launched the Commercial Insurance Division. Our partnership with Frankenmuth Insurance and other carriers will allow us to provide competitive commercial insurance to existing insurance clients and Michigan Chamber members.