Using Data Effectively to Negotiate Health Care Reform Provisions
“With data collection, ‘the sooner the better’ is always the best answer.” – Marissa Mayer, CEO, Yahoo
What is more fundamental than solid data to the process of estimating, projecting and analyzing conditions so organizations can plan and act effectively? Sound data can tell a compelling story, provide sensible direction and identify strategic opportunities.
If you’re involved in contract negotiations, data can be a critical factor in bringing the parties together to resolve complex issues. And, when it does, the effect is undeniably powerful.
Is determining, collecting and analyzing data to formulate plans in response to Health Care Reform a challenge? Certainly. But every public agency should be performing an HCR Strategic Impact Study. If you haven’t already, you need to analyze the potential impact of the Affordable Care Act (ACA) and plan for its effect on your employee health plan now and over the next five years.
A breakdown of costs and migration projections based on the ACA should be done to evaluate potential plan modifications for employers and employee organizations.
The study should achieve the following in regard to HCR and the ACA:
- Provide data and information for developing a multi-year strategic plan to mitigate financial impact
- Project how various provisions may affect the result of plan changes (e.g., plan design or employee contribution changes)
- Analyze potential impact of the plan’s in- and out-migration as well as any change in the number of participating employees and dependents
- Include multi-year projections of total plan costs with a breakdown of every cost driver
- Analyze “pay or play” provisions with detailed information on the impact of ending health plan sponsorship
- Include alternative contribution and plan design scenarios with a clear understanding of the impact of each one
- Estimate the number of employees eligible for financial incentives to join an Exchange plan
- Estimate the number of employees moving out of the health plan in 2014
- Evaluate HCR pass-through fees and taxes
- Assess 2018 cadillac plan excise tax
Access to sound, comprehensive data and data analysis is absolutely necessary for employers and employee organizations to “get it right” from the start. It’s not too late to get started, but the clock is ticking.
To assist employers and employee organizations in carrying out this effort, Keenan, in conjunction with Milliman, can perform a HCR Strategic Impact Study. For details, contact your Keenan Account Executive or Account Manager.