October 28, 2013

TOO MUCH CHOICE:

America's 'other' health-care revolution : While everyone focuses on 'Obamacare's' controversial public exchanges, big changes are coming to the place where most people get their coverage - at work. Here's how they might affect you. (Harry Bruinius, October 27, 2013, CS Monitor)

From taking tighter control over the health insurance market themselves to pushing decisions and costs down to individuals, businesses are experimenting with a host of new ways to offer health-care coverage, spurred in part by the launch of the Affordable Care Act, but also by the inexorable rise in the cost of medical care in the United States. The moves promise to change a social compact that has existed between employers and employees over health-care coverage for more than a half century.

Already, for instance, several large corporations have announced they are setting up private exchanges like the one the fictitious tool-and-die maker belongs to. More than 1 million workers are set to purchase plans on a private exchange in 2014, and by some estimates, as many as 40 million workers will be enrolled in such private exchanges by 2018.

"Going from 1 million to 40 million in five years is ... hypergrowth," says Rich Birhanzel, managing director of Accenture's Health Administration Services. [...]

"Whenever you have competition on a retail basis, prices go down," says Ken Sperling, national health exchange strategy leader at Aon Hewitt, and one of the architects of the private health exchange concept. "And an exchange is a very efficient way to bring buyers and sellers together to drive competition."

People need to be offered fewer choices.

Posted by at October 28, 2013 7:28 AM
  

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