Health act delay spurs second guessing
Asked why he follows the nuances of health care reform so acutely, Norwalk-based Pierson & Smith senior account executive Michael Kedersha didn”™t mince words: “My clients need to know.”
What they need to know remains in flux, as evidenced by the federal government”™s delay of the Patient Protection and Affordable Care Act”™s provision for employer-based coverage. Those with more than 50 employees have an extra year to comply, but Kedersha, whose financial management company just celebrated 60 years in business, saw deeper meaning in the delay.
“They”™re acknowledging it doesn”™t work,” he said. “Why rush something this major?
“They need to repeal it all,” he said. “Dissecting it part by part is going to be difficult.”
Across the border in New York, however, a former state senator from Manhattan, John Ravitz, who serves as point person on the Affordable Care Act for The Business Council of Westchester, said his informational role continues. “There is some breathing room,” he said, but he does not foresee repeal and noted: “A year goes by very quickly.”
Both New York and Connecticut are using federal money to establish health marketplaces set to open Oct. 1. Thirteen additional states and the District of Columbia are making marketplaces; the remainder will use a federal model. The full law had been set to go into effect Jan.1, 2014.
Kedersha, who discussed the Affordable Care Act at a recent Business Council of Fairfield County event, said the year-long delay was a warning sign. “The delay of a year affects other elements,” he said. “Can the health exchanges offer viable and competitive products when the law is not applied to everyone? We need to take a deep breath; we need to test the system first. As much as they say they”™re ready, the federal program is not ready.”
“It was too big a change to get done with a seamless process,” said Ravitz, who serves as executive vice president and COO of The Business Council. “A year gives businesses with more than 50 employees more time, but there is still a lot of information to take in.
“Our immediate goal is the same as it has been since April 1,” he said. “We are meeting with people who do not know about the Oct. 1 exchange; talking about tax credits retroactive to 2010; determining what constitutes a full-time employee; and basic terminology like copays and deductibles.
“Washington was hearing the law presented too much burden in the timeframe given,” Ravitz said. “It”™s a relief for larger businesses, but I hope they”™re not thinking it is never going to happen ”¦ unless they repeal the law. And I don”™t think that will happen.”
The National Federation of Independent Business”™ director of federal public policy, Amanda Austin, said, “This is simply the latest evidence that implementation of this terrible law is going to be difficult if not impossible, and the burden is going to fall on the people who create American jobs. Temporary relief is small consolation. We need a permanent fix to this provision to provide long-term relief for small employers.”
Amy Allen, managing director of advocacy and international trade for the Westchester County Association who also heads the association”™s Healthcare Consortium, said, “The delay of the employer health care mandate is very good news for the business community and completely validates our position that the new law and its regulations are unclear.
“Business does not like uncertainty, and there is plenty of confusion to go around,” she said. “The Affordable Care Act law is thousands of pages long. On top of that, there are several thousand more pages of regulations from the IRS, Department of Labor and other agencies that business will have to comply with.
“The business community needed a fighting chance and today the White House gave it to them,” she said.
The Westchester County Association said it will continue to offer in-depth seminars on the Affordable Care Act for the entire business community. Its Healthcare Consortium ”“ about 50 members total ”“ includes hospitals, large physician groups, home care agencies, nursing homes, assisted living facilities, insurers, trade associations, academic institutions and business.
In addition to holding bi-monthly workshops at the Business Council”™s headquarters on Corporate Park Drive in White Plains, the Business Council is also offering the presentations through a partnership with the Westchester Library System. The Business Council will travel to local businesses upon request.
Obama administration adviser Valerie Jarrett wrote in a blog quoted on the Connecticut Business and Industry Association website: “As we make these changes, we believe we need to give employers more time to comply with the new rules. Since employer responsibility payments can only be assessed based on this new reporting, payments won”™t be collected for 2014. This allows employers the time to test the new reporting systems and make any necessary adaptations to their health benefits while staying the course toward making health coverage more affordable and accessible for their workers.”