Donna Losch of The NWFA Trust discusses uncertainty around the future of the Affordable Care Act.Spokane, Wash. – With political turmoil continuing to swirl in Washington, one big question credit union HR and benefits professionals have is: What is the status of the Affordable Care Act (a.k.a. Obamacare), and what does it mean for my credit union?
At the NWCUA’s MAXX Convention Wednesday, Donna Losch, SVP of Brown & Brown Insurance and program manager for The NWFA Trust, admitted she hoped to have more information to share during her breakout session, “The Affordable Care Act: Where Does it Stand in 2018?” when she chose the topic six months ago. But the future of the ACA remains as uncertain now as it did then. “It’s still a little bit in limbo,” she said.
Going into 2018, the ACA will remain the law of the land, but its uncertain future will unfortunately cost all of us money, Losch said. “The insurance companies are planning on worst-case scenarios, and that means we’ll see increased prices,” she said.
People who are not on employer plans will absorb the brunt of those premium price hikes and are likely to see increases as high as 50% to 60% next year. As a result, one trend credit unions are likely to see next year is an influx of job applications from people on individual health care plans, such as early retirees who thought they could afford their own plans until they turn 65, Losch said. Sole proprietors are also likely to actively seek jobs that allow them to move from 1099s to W2s.
Following Republicans’ failed effort to “repeal and replace” Obamacare, President Trump began issuing executive orders around health care, which, among other things, made it OK to sell insurance across state lines, green-lighted National or Regional Association plans and put an end to ACA out-of-pocket subsidies. Senators Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) have since introduced a bipartisan bill to stabilize Obamacare, but it’s likely too late for the bill to have any impact on 2018 premiums, Losch added.
In the meantime, credit union benefits professionals must plan on continuing to comply with the ACA. That includes continuing to offer essential health benefits such as maternity care, allowing children to remain on their parents’ plans until age 26, banning pre-existing condition exclusions as well as lifetime limits on coverage, and covering preventative care at 100%. Credit unions that employ 50 or more people will also have to complete the ACA reporting requirements for 2017 in early 2018. “I know that’s a big concern for a lot of people in this room,” Losch commented.
