Charles Allen, CEO of Crowe Horwath, a nationwide accounting firm, discusses the effect of healthcare reform on five key groups:
1. Hospitals and other providers: The impact of the law would generally be negative because providers would have to prove they are delivering high-quality care or see reimbursements cut.
2. Employers: Faced with a mandate to cover their employees, many companies might decide to instead pay a relatively low fine and have their employees purchase insurance through new health insurance exchanges. Employer-based insurance would thus decline, which is "a bit counter to the intent of the health care reform law," Mr. Allen said.
3. Taxpayers: The new law does not have any proven methods to control healthcare spending. If healthcare costs continue to spiral, there will be "a looming fiscal crisis" that taxpayers will be asked to fix.
4. Insurers: The law's new health insurance exchanges will force insurers to sell individual policies, which has not been their focus. The law also forces insurers to fundamentally change administrative processes, pay additional taxes and face greater government scrutiny.
5. State governments: At a time of severe budget problems, states would assume much of the burden of implementing the new law. They will have to set up health insurance exchanges, administer new oversight programs and qualify more constituents for Medicaid. Many states are challenging the constitutionality of the new law as an interference with states' rights.
Read more coverage on employers and healthcare reform:
- 6 Ways Republicans Plan to Chip Away at Reform Law After Election
- Reports Say Healthcare Reform Would Help Physicians Offices, Other Small Employers
- Healthcare Costs to Increase by 10.5-11% in 2011, Partly Due to Reform
1. Hospitals and other providers: The impact of the law would generally be negative because providers would have to prove they are delivering high-quality care or see reimbursements cut.
2. Employers: Faced with a mandate to cover their employees, many companies might decide to instead pay a relatively low fine and have their employees purchase insurance through new health insurance exchanges. Employer-based insurance would thus decline, which is "a bit counter to the intent of the health care reform law," Mr. Allen said.
3. Taxpayers: The new law does not have any proven methods to control healthcare spending. If healthcare costs continue to spiral, there will be "a looming fiscal crisis" that taxpayers will be asked to fix.
4. Insurers: The law's new health insurance exchanges will force insurers to sell individual policies, which has not been their focus. The law also forces insurers to fundamentally change administrative processes, pay additional taxes and face greater government scrutiny.
5. State governments: At a time of severe budget problems, states would assume much of the burden of implementing the new law. They will have to set up health insurance exchanges, administer new oversight programs and qualify more constituents for Medicaid. Many states are challenging the constitutionality of the new law as an interference with states' rights.
Read the webCPA report on healthcare reform.
Read more coverage on employers and healthcare reform:
- 6 Ways Republicans Plan to Chip Away at Reform Law After Election
- Reports Say Healthcare Reform Would Help Physicians Offices, Other Small Employers
- Healthcare Costs to Increase by 10.5-11% in 2011, Partly Due to Reform