Health reform myths and misconceptions
Ignorance is definitely not bliss in the business world. But what’s even worse is being misinformed. Whenever you think you know something that turns out to be untrue, you are much more likely to make questionable decisions or take actions that could be detrimental to your business.
Even before it became law, the Affordable Care Act (ACA) was a breeding ground for misinformation. As you consider your health care options, make sure you’re not getting distracted or misled by all the noise.
Here are five common misbeliefs employers have about health reform and the facts that debunk them.
Myth: The ACA creates a new government-run insurance plan.
Fact: The health care reform law includes no such provision.
Myth: Many employers will stop offering insurance to their employees when more of the law’s provisions are enacted.
Fact: Independent analyses have found that most employers will continue to offer health coverage to their workers. Our online survey of benefit decision makers at Michigan companies that offer health insurance to 25 or more employees found that about 80% believed health benefits are important to employee morale, recruitment and retention. Only one in five of respondents have even considered dropping employee health benefits.
Myth: Once public exchanges open in 2014, eligible companies must purchase employee insurance through these exchanges.
Fact: Employers of all sizes may continue to purchase health plans from insurers.
Myth: All employers must buy insurance for employees or pay a penalty.
Fact: For businesses with fewer than 50 full-time and full-time equivalent employees, there are no consequences for not providing health insurance.
Myth: Health reform will definitely increase insurance premiums for most businesses and raise their overall health costs.
Fact: The independent Congressional Budget Office confirmed that the ACA would lower health insurance premiums for the same insurance plan by up to 4% for small businesses and 3% for large businesses.
Rising benefit costs is a challenge for all companies. GlidePath, a new solution from Blue Cross Blue Shield of Michigan and Blue Care Network, offers your mid-size company an innovative way to manage spending and risk. It can transform the way you finance your company’s health insurance coverage. With GlidePath’s defined-contribution solution, you can determine your company’s health benefit budget and simplify the administrative work that goes along with offering health benefits.