employer contributions

Answering Your Health Care Reform & Benefits Questions

While negotiations in Congress are certainly still ongoing, we thought it would be a good time to talk about the most recent health care reform proposals—and through doing so answer some frequently asked questions.

Let’s start by simply stating the obvious: We have a broken system. There are too many uninsured people in this country, too many people struggle to obtain adequate coverage and the process is so complicated that without a good broker it’s an immense challenge to secure the very best, most affordable plan for you and your family.

The solution with the most steam is mandated health coverage for all Americans (or more realistically 95 percent of all Americans). The outline recently released by Sen. Ted Kennedy (D-Mass.), as The Washington Post puts it, calls for “sweeping health-care legislation that would require every American to have insurance and would mandate that employers contribute to workers’ coverage.”

Democrats are not alone. This week, Sen. Judd Gregg (R-N.H.) reportedly broke ranks with his Senate colleagues with a proposal requiring that individuals own health insurance.

And while coverage for all Americans is certainly appealing, it’s the second part about mandated contributions that has many groups—from insurers to doctors to employers—concerned and keeping a watchful eye. What would it really mean for employers to contribute to workers’ coverage … and how would it work? Would this guaranteed health care be guaranteed by the government? Guaranteed through a person’s employer? Through a public health option?

There are a lot of uninsured individuals who don’t have coverage through their employer, so how do you make similar plans available to all individuals and families—especially those who don’t have health coverage through their employer?

These are all questions to which we have some clues, but it’s still too early to tell. What is clear is that the Obama administration is deeply committed to health care reform this year. In that same WaPo article the president is quoted as telling members of Organizing for America, “If we don’t get it done this year, we’re not going to get it done.”

That kind of urgency necessarily leads to a discussion of cost. Analyses of a recent Democratic House proposal estimated a need to cut 2 trillion dollars over the next 10 years to pay for a dramatic overhaul of the health care system. President Obama this week, according to the reporting of Politico.com, “summoned Democrats from two key Senate committees to the White House on Tuesday to make clear that the bill must control health costs and not add to the deficit.”

The goal is affordable health care plans for everyone, but where does that money come from and who’s going to pay for it?  That’s the big challenge right now. That’s what everyone on the Hill is trying to figure out, while those groups who would suffer under changes are mounting opposition.

I’m not here to characterize the current proposals as good or bad for Americans. In fact, there’s not enough concrete information at this stage to even make that judgment. My concern as a father, a broker and an American citizen is the potential for rushing into a new program too quickly and then have “buyer’s remorse.”

If this is done too quickly we could look back and realize our options or the quality of benefits has been compromised. For example, no legislation should prevent an American from being able to choose his or her own doctor. No legislation should effectively “penalize” those who have taken the steps to secure coverage by forcing them into inferior changes. There’s no evidence that a current proposal would create such limitations, but that’s just the type of unintended consequences that can occur from a rush to action. I just hope that through deliberation, we can put the right plan in place. At Stephenson Welsh, we strongly believe in continuing a private health care system that supports the freedom to choose your own doctors—one in which those who need coverage most are not denied the coverage they need.

It’s a good thing that reforms are being discussed. It’s just essential that we go about this in a thorough, deliberative way.

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