Issue link: http://www.insightdigital.biz/i/180153
Health insurance they need to be able to draw into the market to be able to offset the higher costs of bringing down the coverage for the older population. But how are you going to draw them in if the rates are three to four times higher than they are today? They're looking at a penalty of $95 or 1 percent of income. Again, their income would have to be pretty high to offset the premiums they'll have to pay. Rai: This could get very, very expensive for the government if those young individuals don't come into the marketplace because then you're only going to be insuring everybody who is sick. INSIGHT: What are some positive results of the ACA? McClone: It's probably more positive in other parts of the country than it is here in Wisconsin. A lot of the issues this was meant to address we didn't really have a problem with in Wisconsin. If you couldn't afford health insurance we had Badger Care, and if you couldn't get coverage (due to pre-existing conditions), we had HIRSP (the state's Health Insurance Risk-Sharing Plan). In some parts of the country these benefits didn't exist. The silver lining is this has forced people to ask, "Why are we doing this to ourselves?" A lot of companies every year were just taking an increase and saying, "Well, this is the way it is." Now they are taking a step back to say, "What do we really need to do to be strategic and competitive?" Rai: There's been a huge increase in small to large employers focusing on the health of their employees for the first time. They're saying I'd really rather you not get sick because of what it's costing me. Employers understand the return on investment in their employees' health. Lingenhag: The appendage to (allow young people to remain on their parents' health insurance plans until) age 26 has become popular. INSIGHT: Will costs be reduced for some people? Lingenhag: For the high-risk people it definitely should go down. The over age 50ish could see decreases, although some of that could be offset "Private industry is going to have to adapt and grow if we're going to thrive." – Joel Lingenhag, Network Health Plan by some mandated benefits. But it's all built on that belief you're going to be able to attract those younger ones. McClone: There will be a temporary group that will benefit from this, the community-rated model, those who were the most sick or unhealthy. Their rates could stay the same or even go down by some predictions. But that's such a temporary issue. INSIGHT: What insurers will expertise, knowledge, trust & respect. That's How Other Lawyers Describe Us. D on't leave the future uncertain—trust estate planning to attorneys who are recommended by their peers. The estate planning attorneys at Menn Law bring knowledge, proven expertise and decades of experience to your estate, will, family trust and other estate planning issues. Trust is confirmed at Menn Law. 30 | Insight • O c t o b e r 2 013 920.731.6631 | www.mennlaw.com w w w. i n s i g h t o n b u s i n e s s . c o m