Delta Announces Higher Health Care Costs

[stuy119]

The large employer penalties were delayed as was the onerous reporting. There are a lot of portions of ACA that apply to large employers that were not delayed. Really large employers are going to get ACA-compliant affordable/adequate plans in 2014 anyway. If their 2014 plans are not affordable/adequate ACA-compliant plans, then employees could access a subsidy. And next year, when the penalties apply, what a mess to transition all those people back, or else to pay the penalties.

Exactly. In thinking they are helping businesses with the delay, the administration is only confusing things even further.

Businesses think they have a 1-year reprieve, but the reality is that they just don't have to pay penalties. Their plans have to be compliant, but not for the business and potential fines - because their employees still face fines and penalties! And the excuse of "not knowing better" won't fly.

 

[TonyC]

The large employer penalties were delayed as was the onerous reporting. There are a lot of portions of ACA that apply to large employers that were not delayed. Really large employers are going to get ACA-compliant affordable/adequate plans in 2014 anyway. If their 2014 plans are not affordable/adequate ACA-compliant plans, then employees could access a subsidy. And next year, when the penalties apply, what a mess to transition all those people back, or else to pay the penalties.

Thanks Ann...

I know that i am not alone in trying to figure this one out. So much confusion with this bill.

From what i can decern from the article, Companies like Delta are affected more-so because they are self-insured?

Also, seems like there is a timing issue with Delta and their internal health plan. Something to do with adding children and retirement benefits. I'm not sure as their plan seems very confusing. This fact alone seems to indicate they will pay more with or without ACA.

Anyone know why they are being hit so hard with increases other than ACA?

 

[houcoogster]

Thanks Ann...

I know that i am not alone in trying to figure this one out. So much confusion with this bill.

From what i can decern from the article, Companies like Delta are affected more-so because they are self-insured?

Also, seems like there is a timing issue with Delta and their internal health plan. Something to do with adding children and retirement benefits. I'm not sure as their plan seems very confusing. This fact alone seems to indicate they will pay more with or without ACA.

Anyone know why they are being hit so hard with increases other than ACA?

Lets just go down the list of expenses.

1.) Got to cover dependents till 26
2.) Got to have health insurance or pay a fine, so more employees join the plan.
3.) Got to cover wellness/preventative services with no co-pay
4.) No lifetime maximums
5.) Got to cover mental health like any other illness.
6.) Got to cover drug and alcohol rehab
7.) Healthcare Inflation

Thats what I can think of just now someone can add to it

 

[somarco]

From the article . . .

more than 8,000 children added to our rolls resulting in a permanent increase in our overall costs of about $14 million per year.

The ACA requires large employers to pay an annual fee of $63 per covered participant in 2014. For Delta's roughly 160,000 enrolled active and retired employees and their family members, this represents more than $10 million