Let’s talk health insurance, shall we? Lots of interest in the topic - any session that had “Health Insurance” in the title was standing room only, no matter how big the room was. Lots of frustration with the people in the hall who were left out – many said that they came for that topic alone. They put speakers and video in the hall, but it wasn’t the same.

Studying Health Insurance reform in the hall
So, what was said?
Gary Kushner carried most of the sessions – Gary has been the “go to” guy on benefits for the last 5 years or so and is well known at SHRM for doing a good job with a complex subject.
A few points -
Grandfathered status – Under the rules, employers will forfeit their grandfathered status if they make substantive changes in their plans or carriers. Kushner reviewed the new regulations carefully and said that, by the end of 2013, not many grandfathered plans will still exist. If you wish, the staff at Gregory and Appel have pulled together a summary of the issue, and we are happy to share the knowledge.
Although Kushner sounds ominous, he says it’s not that bad once we work on the process. He said it should not be the ultimate goal of any employer to maintain their grandfathered plan forever. He said that HR has a big opportunity to think strategically and think for the future.
What should you do? His advice is not rocket science. He said the key is to put health insurance into context with the total rewards strategy. Yup.
On dropping health care coverage: The penalty of $2000 per employee for not providing coverage could appeal to top management from a cost saving point of view. Kushner said that many CFOs would be asking that very question, and that the math would appear to be a no-brainer. Why pay big bucks when you can drop health coverage? Not so fast. Other issues to consider:
If an employer drops coverage, then employees would purchase coverage through state health care exchanges or through the private market. Once employees started paying for the coverage, they will certainly begin pressuring businesses for pay raises to offset the cost of insurance and the additional income taxes.
If employers are forced to raise wages, then payroll taxes would also increase. In addition, employers that drop coverage could be hit with higher turnover and more difficulty in attracting top level talent. In the example he gave, what appeared to be a savings could end up costing an employer more than $5000 per employee per year.
His closing points were to plan ahead. He believes that the HR role needs to play is to be strategic, and to come up with a plan before 2012 or beyond. Those who start working now will have a leg up on the competition.
Let me know if you want a copy of the summary of the legislation. Happy to help.

One of Kushner's sessions