Tag Archive: unemployment

Shifting employment landscape complicates ACA implementation

When the Patient Protection and Affordable Care Act was drafted, it contemplated preservation of employer-based health coverage that came about in the 1940s and which continues to serve as the primary form of coverage for working age Americans.  In preserving employer-based coverage, the Affordable Care Act assumes most people will continue to obtain their incomes – and their health coverage – via full time employment.

It also assumes small employers will for the most part want to provide health benefits to their employees provided they have access to quality, affordable plans, reinforced by the law’s reforms of small group markets and pooling their purchasing power via the health benefit exchange Small Business Health Options Program (SHOP).

However, there are multiple, large scale shifts altering employment in the United States and the health benefits that have historically come with it for more than six decades:

 


Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email fpilot@pilothealthstrategies.com or call 530-295-1473. 

UCLA report finds economic downturn and job loss pared health coverage for middle class Californians

Critics of employer-based health insurance (and single payer advocates) will likely point to this recent article by the California HealthCare Foundation’s California Healthline reporting on a recent UCLA Center for Health Policy Research report finding 670,000 Californians lost employer provided health insurance in 2008 and 2009.  The article quotes Shana Lavarreda, lead author of the report, describing the numbers as an indication that medical coverage among middle class Californians was significantly undermined by the economic downturn and resulting job losses.  “The uninsured here is less and less an undocumented [worker] problem, and now it’s more of a Main Street problem,” Lavarreda told California Healthline.

The report has implications for the Patient Protection and Affordable Care Act, which is predicated on all Americans being in a public or private managed care or health insurance plan by 2014 — with the bulk of private coverage employment-based.  The experience of California (and certainly other states) in the two years leading up to the enactment of the Act in 2010 shows that employer-based coverage — which had been eroding even prior to the recession with fewer small employers providing coverage — remains quite vulnerable to fluctuations in the economy that disrupt employment.

 


Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email fpilot@pilothealthstrategies.com or call 530-295-1473. 

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