|Policy Watch - Health Care|
An affordable, innovative and efficient health care system is essential to ensuring a productive and competitive U.S. workforce, as well as a better quality of life for all Americans. As the providers of health care coverage to more than 177 million Americans, employers and the plans they provide to employees and their families are the bedrock of the U.S. health care system. Enacted in 2010, the Affordable Care Act (ACA) brought about major reforms in health care coverage in the United States, affecting both insured and self-insured employer-sponsored health care plans.
Although the ACA has expanded access to health insurance for an estimated 20 million Americans and the U.S. uninsured health rate is at a historic low of 8.6 percent, increasing health care costs continue to place a growing burden on individuals, U.S. businesses and the economy.
According to the 2016 Kaiser Health Benefits Survey, the average annual premiums for 2016 for employer-sponsored health insurance are $6,435 for single coverage and $18,142 for family coverage. Each rose 3 percent over average 2015 premium levels. In addition, the U.S. Department of Health and Human Services announced that in 2017 the health insurance premiums on the ACA’s Exchanges are expected to increase an average of 25 percent across the 39 states served by the federally run online market and that about 1 in 5 consumers will only be able to choose health care coverage from a single insurer, after major national carriers such as UnitedHealth Group, Humana and Aetna scaled back their participation in the Exchanges. The continued increase in health insurance premiums is outpacing both inflation and wage increases, making health care costs one of the primary concerns of chief executives.
Despite the rising cost of coverage and the complexity of the ACA, there is little evidence that employers are planning to abandon health care coverage for their employees. Many organizations are changing health care benefits or turning to other health care design strategies, such as health savings accounts, private exchanges, wellness programs and disease management programs to manage costs. It is important that public policies support the efforts of employers to improve the affordability and quality of U.S. health care.
The following specific issues are of particular concern to human resource executives and the organizations they serve: