Cost of Prevention:Overview of the Impact of the Affordable Care Act

Cost of PreventionAgenda

Brief History of Health Care Reform

Impacts on Big Business

Impacts on Small Business

Europe and Health Care

Impact on Debt

Cost of PreventionBrief History of Health Care Reform

Party Platform 1912-Health Insurance for Industry

“Socialized Medicine”

Committee on Economic Security

Social Security Act of 1937

Cost of PreventionBrief History of Health Care Reform

“The Great Society”

Medicare / Medicaid added to Social

Security Act July 1965

CHIP- Medicare / Medicaid Improvement

Prescription Reform for Seniors - Medicare / Medicaid

Improvement

Brief History of Health Care Reform Cost of Prevention

3 Prong Strategy:

Improve Technology

Prevention of Chronic Diseases

Market Structure to increase competition

Cost of PreventionFortune 500 Healthcare

These organizations are central to the country’s economy

Provide coverage for millions employees and millions of dependents and retirees

Large companies rely on competitive bidding

Firms have developed explicit strategies to promote the shift to managed care

Influential models for other purchasers of health care( Small and medium-size

employers, as well as public purchasers)

Current Healthcare cost is 7% of Total Revenues for Fortune 500 Companies

Cost of PreventionEffects of Affordable Care Act on Fortune 500 Companies

Companies are holding off on hiring permanent workers

They are hiring in temporary workers via temp agencies

Companies are unsure how much Obama Care is going cost per each employee

Healthcare forecasted to rise by 10 over the next couple of years

Rising healthcare cost slows down hiring and

is some cases results in layoffs

Cost of PreventionStrategies for Lower Healthcare Costs

Fortune 500 Companies

Companies are investing in workplace wellness programs

Programs reduced personal healthcare costs, most commonly

because of fitness center discounts and free preventative screenings

Employers who invest in wellness programs see increased employee

retention, attendance, and productivity

Improved health has proven to be a win-win for each party involved, as

the best way to reduce rising health care costs

Essential backbone to the American economy

Increased 123%, from $5,700 in 1999 to $ 12,700 in 2009

(U.S. Dept of Health and Human Services)

Affordable Health Care Act seeks to address problems for

small businesses

Still does not require small businesses to provide health

care coverage

Cost of PreventionBackground

Cost of PreventionBenefits

Health Care Tax Credit

Must meet requirements

Currently 35%, In 2014

increases to 50%

Exchanges

Increased buying power

Pooling power

No limits on insurance

Lower premiums and

coverage costs

Preventative Care

69 million workers reporting

missed days due to illness each

year (U.S. Dept. of Health and Human Services)

Healthier Employees =

Healthier Business

Increased Productivity and

Efficiency of employee work

Cost of Prevention

Benefits Cont’d Employer Wellness Programs

Establish a core set of interventions to increase

employee health

Costs Maintenance of the business wellness programs for the

employees

Should be weighed against benefits

Cost of PreventionWorld Rankings

USA spends 16.2% of GDP on health care, which equals

$7,410 per capita

USA ranks 37th in overall health system performance and

overall efficiency (according to the WHO)

Nearly 50 million people are uninsured in the United

States

Cost of PreventionEuropean Healthcare

According to WHO, France, Italy, San

Marino, Andorra, Malta comprise the top 5 best health

care systems in terms of performance and efficiency

Health Insurance in most EU countries is not a choice, it

is mandatory by law!!

“Le Santé d’abord” philosophy

Cost of PreventionGerman Healthcare System

Germany only spends 11.3% of GDP, $4,129 per capita

Everyone is required by law to have a health insurance plan

You can choose between: 1) Allgemeine or Ersatz Krankenkasse or 2)

Private Krankenkasse

Employer and Employee split the cost (employee portion

automatically gets taken out of paycheck)

Higher quotes for privately insured employees but better perks

Cost of PreventionFuture Impacts

CVDDiabetes

High Blood Pressure

$147 billion

$210 billion

$93.5 billion

$174 billion

Cost of Prevention

500,000,000 FY 2010750,000,000 FY 2011

1,000,000,000 FY 20121,250,000,000 FY 20131,500,000,000 FY 20142,000,000,000 FY 2015 and each FY thereafter

Cost of Prevention

Questions