6 Years of PPACA: Where are we now?
Where are we?
Since its passage in 2010, employer views of the Patient Protection and Affordable Care Act (PPACA, or ACA) have shifted. After fears dissipated of the Marketplace Exchange competing with employer-sponsored health plans, and after a difficult implementation period; employers may have begun to adapt to the change.
It was speculated that some companies would stop offering certain levels of health care coverage in the wake of PPACA, due to the competing policies available on the Marketplace.1 The assumption was that those Americans with preexisting health conditions would find Marketplace offerings especially appealing.
78% of employers surveyed by the IFEBP stated that if PPACA were repealed they would continue to offer the same benefits it mandated.2 The survey showed a majority of employers were in not in favor of a repeal of PPACA. The stance of this majority could be a result of implications on the national economy. Drastically different law could have a disruptive impact on the health care industry as a whole.
Divisive political viewpoints surrounding the PPACA still reverberate with controversy. Congress has introduced sixty-three different bills to dismantle or repeal the Act since President Obama introduced it in 2010. But is it surprising that legislators are calling for improvements? As with other large pieces of legislation such as Medicare, the fine-tuning has just begun.
What changes do employers want?
Employers overwhelmingly agree the Cadillac tax has got to go. The same is true of the employer mandate, which involves burdensome reporting and time-intensive administration.
More than 50% of private sector workers in the U.S. are employed by small companies.5 It is no wonder that employers want improved flexibility for funding health plans by supporting the Small Business Healthcare Relief Act.4
Employers are wary of health providers banding together, and want the government to enforce anti-trust rules.4 Above all, they would like to see legislation that more specifically tackles the systemic issues that have caused high costs for health care services.
On the whole, employer outlook on providing health care to employees is quite favorable per survey results. The major providers of health care will not likely go out of business.
No matter what transpires, it looks to be good news ahead for Americans counting on their workplace’s health insurance, as well as for the twenty-two million Americans who purchased affordable individual insurance.
Did you know? Additional Health Care Legislation Facts:
Medicare has undergone many changes since its inception in 1965, with 116 different bills passed to add and amend Sections.4
Overall, 44% of employers do not wish for the repeal of PPACA. On the other side, 35% of employers were in favor of its repeal. 20% are unsure.3
Employers surveyed are especially in favor of continuing to allow workers to cover their adult children until age twenty-six. They favor this and other PPACA benefit offerings that they feel have improved employee health and wellbeing.3
The broadest law changing Medicare was the Medicare Modernization Act of 2003, which added 27 new sections and amended 55 others.4
97% of employers say they plan to continue offering insurance to full-time employees over the next five years.3
Employer confidence in offering healthcare coverage ten years from now has nearly doubled since 2014 from survey findings.4
According to the Kaiser Family Foundation, the percentage of adults ages 65 and under with employer-sponsored coverage has remained unchanged since PPACA was signed.1
Congress has introduced sixty-three different bills to dismantle or repeal the Act since President Obama introduced it in 2010.4
1. Craver, J. (2016). PPACA has not killed employer-based insurance. Retrieved from http://www.benefitspro.com/2016/04/05/ppaca-has-not-killed-employer-based-insurance?slreturn=1466526333
2. 2016 Employer-Sponsored Health Care: ACA's Impact. (2016). In International Foundation on Employee Benefits – ACA Survey 2016. Retrieved from https://www.ifebp.org/bookstore/aca-survey-2016/Pages/2016-employer-sponsored-health-care-ACA-impact.aspx
3. Craver, J. (2016). Most employers do not support PPACA repeal. Retrieved from http://www.benefitspro.com/2016/05/18/most-employers-do-not-support-ppaca-repeal
4. Barkett, J. (2016). 5 things employers would change about the ACA. Retrieved from http://www.benefitnews.com/opinion/5-things-employers-would-change-about-the-aca
5. McGregor, J. (2016). Why the buffet of employee benefits has exploded over the past 20 years. Retrieved from https://www.washingtonpost.com/news/on-leadership/wp/2016/06/20/why-the-buffet-of-employee-benefits-has-exploded-over-the-past-20-years/