Close Close

Life Health > Health Insurance > Your Practice

6 industry reactions to the PPACA delay that may surprise you

Your article was successfully shared with the contacts you provided.

Less than 24 hours after the annoucement was circulated, health insurance and employer benefit trade groups appear supportive, rather than critical, of the administration’s decision to delay implementation of PPACA’s employer mandate provision. If anything, they have implied a collective sigh of relief that they will be given an additional year to implement the complex law. What are some of the most influential health care policy decision-makers saying? Read on to hear from six of them. 

janet1. National Association of Health Underwriters

Janet Trautwein, NAHU CEO, said that NAHU “appreciates” that the Obama administration has listened to the concerns of American businesses and delayed the penalties for a requirement that was not ready to be effectively implemented.
“NAHU has had longstanding concerns that employers attempting to comply with very complex requirements that differ significantly from time-tested benefit practices on very short notice could be penalized for inadvertent violations,” Trautwein said. “The employer-based health insurance system has reliably and effectively delivered quality health coverage to generations of Americans, and to impose the shared responsibility rules at this time would threaten that structure. Providing transition relief will allow businesses recovering from the economic hardships of the past five years to make sound business decisions to comply with the health reform law’s requirements without fear of significant financial penalties in the first year of changed operations.”
Trautwein noted that about 98 percent of all large employers in the United States already offer coverage. “As employer groups deal with questions on how this delay will affect their businesses, we encourage them to seek counsel from an experienced, licensed health insurance agents. These professionals can help employers prepare for the new 2015 deadline as well as assist in finding affordable plans that fit the needs of employees and their families.
“We look forward to getting more implementation guidance from the administration within the promised week” Trautwein said. “We will continue our dialogue with policymakers to ensure that new regulations and requirements don’t undermine the portions of our healthcare system that work well and deliver immense value to individuals, families and businesses. Our goal is to help all Americans receive the coverage they deserve at a price they can afford, and by working together, we can make this happen.” 

z2. America’s Health Insurance Plans

Robert Zirkelbach, a spokesman for America’s Health Insurance Plans, said that “We appreciate that the administration is being responsive to the concerns employers and insurers have raised about the workability of the reporting requirements related to employer health care coverage.” AHIP represents health insurance companies. It has also been a consistent critic of PPACA.

Zirkelbach noted that the decision was based on a reaction to proposed rules dealing with implementation provided by commenters such as AHIP. Zirkelbach said AHIP told the administration that the new law imposes “significant new requirements” on health insurers and employers starting in 2014 including health coverage benchmarks for actuarial value (for individual and small group insurance) and minimum value (for self-funded group health plans and insurance provided to large group health plans) and informational reporting with respect to health coverage.

“It is critical to implement these provisions in a manner that minimizes the burdens on insurers, employers, and individuals and to provide a simplified process for reporting that avoids duplication of effort,” AHIP told the Treasury, Zirkelbach said in noting that it was these type of comments that likely led to the administration’s decision.

klein3. American Benefits Council

James A. Klein, president of the American Benefits Council, said the delay “provides vital breathing room to implement the law in a more thoughtful and administrable way.” The American Benefits Council lobbies for, and advises large companies on, all federal and state employee benefit issues.

Klein said that major employers have led the way in providing coverage to their workers and are expending great resources to ensure compliance with the new law.

“This relief will minimize disruption for employers and their workers,” Klein said. He added that the ABC “has been working closely with the Obama Administration for over three years to mitigate wherever possible the cost and burdens of implementing the ACA. We will continue to do so in the months ahead.”

darling4. National Business Group on Health

“This is terrific news for large employers all across the country,” said Helen Darling, President and CEO of the National Business Group on Health, a non-profit association of more than 360 large U.S. employers. She said the one-year delay “will give employers much needed additional time to make any necessary changes to their health care benefit programs and any other decisions to meet the law’s requirements. It also gives employers relief from yet-to-be fully worked out reporting requirements and the administrative burdens of complying with a complex set of rules.”

Steve Wojcik, vice president of public policy at the National Business Group on Health, commented, that that the delay is only one year for now and questions whether delays to other provisions in the ACA might loom. “Most large employers are well into finalizing benefit changes and plans for 2014.  It may mean a temporary pause for some, for others it may mean no change in their plans for 2014.” But, he said, “it’s definitely a reprieve from reporting requirements and the dollars and staff time that would have been diverted to compliance with the mandate, though the law certainly has other components that have added to plan costs and administrative burdens already.”

gretchen young5. ERISA Industry Committee

Gretchen Young, senior vice president for health policy for ERIC (the ERISA Industry Committee, another employer group), added that the decision to delay implementation is a welcome one, particularly in light of the numerous questions that remained in terms of how companies were supposed to comply with the employer mandate provisions that were originally set to take effect next year.

“We are looking forward to reading formal guidance on this transition rule as the consequences and effect of the delay are not completely clear at this point,” Young said.  “We do appreciate the sensitivity of the Administration to our concerns and hope that it will carry forward into other difficult issues as well,” Young added. 

bruckman6. Digital Insurance

“The delay in the Affordable Care Act’s employer mandate gives larger businesses more time to focus on their benefits strategy and compliance with the shared responsibility provisions of the legislation,” said Adam Bruckman, president and CEO of Digital Insurance. ”Many of our clients already provide benefits for all or most of their employees, but for some employers, the shared responsibility mandate has a major financial impact and could force changes in the way their business and workforce are structured.”
“This delay acknowledges the amount of change, work and reporting requirements brought about in our industry and provides short-term relief related to this one aspect of health care reform. As a company, Digital has made significant investments in tools and services to help our clients prepare for the changes ahead. We’ve been working diligently for several years in preparation for the Act’s numerous provisions, and we will continue along these same lines. More time is always welcome news and provides some relief for those affected by it most,” said Bruckman.