Healthcare Reform Update – May 14, 2010

Implementation News

• The federal government has issued rules on covering dependents up to age 26, even as health plans are already moving forward to implement this provision. See details on what LifeWise is doing.
• The impact of healthcare reform on rates is also gaining more attention. The AP had a recent story on the impact of covering dependents up to age 26, noting that such reforms will drive costs higher—above and beyond upward pressure from rising healthcare costs.
• Questions in the marketplace about the impact of reform continue in the absence of necessary federal regulatory guidance. The latest example: coverage in the Seattle Times about confusion regarding tax credits available to certain small businesses.

Sustainable Healthcare System News

• A just-released study by the respected Milliman firm confirmed that medical costs continue to rise, reaching more than $18,000 annually for a family of four.
• Costs are also an issue in Massachusetts, in the midst of its own state-level reforms. The Worcester Telegram-Gazette has been examining the issue and looking at how to control costs.
• One component of addressing costs is wellness. LifeWise is continuing its work to support employers and members with effective wellness tools, but federal reform may also offer financial support to small employers offering such programs.

The Buzz

• Speaking of Massachusetts and reform, the Boston Globe recently ran a guest column highlighting the need for government implementation of reform to retain and promote options for employers and consumers in the marketplace.
• If it feels as if healthcare reform has created more questions than answers at this point, don’t feel alone. Government agencies are scrambling to catch-up as implementation unfolds.