SAN ANTONIO - Regardless of how the U.S. Supreme Court rules on the constitutionality of the so-called ObamaCare program and, specifically, provisions mandating individuals purchase coverage, the health care reform law is changing the way credit unions offer and fund employee health plans, according to one expert.
Brad Pricer told the CUNA Human Resources and Training and Development Council Conference that uncertainty over the law shouldn't prohibit credit unions and leagues from tailoring their benefit offerings and the platforms used for those offerings.
Pricer said health care insurance exchanges are moving forward and will continue to do so regardless of the Supreme Court's decision, which is expected in June. Exchanges are meant to facilitate the purchase of health plans, making the process easier and more efficient.
Pricer said a common question he gets is whether credit unions will still need to sponsor health plans for employees due to the individual mandate (assuming it survives Supreme Court review). The answer is no, but they will have to pay a penalty under "play or pay" provisions. The penalty tax will apply to certain businesses that do not offer health insurance to their employees at certain levels of coverage and affordability, or do not offer it at all.
He predicted employers will likely follow their peers when deciding whether to offer coverage after exchanges are established by Jan. 1, 2014. "Whether your credit union should continue to provide coverage comes down to whether the businesses you are competing with to attract and retain employees decide to offer coverage or not. If they do, and your credit union discontinues its plan, it will be more difficult to attract and retain talent."
Credit unions that want to continue to promote an employer of choice strategy in attracting and retaining employees by continuing to offer health insurance may need to look at new ways of purchasing that coverage through state-sponsored or private exchanges, Pricer added.
One trend gaining momentum is purchasing through exchanges and employing a defined contribution approach to funding is gaining momentum. "Instead of providing a set of pre-defined health insurance benefits through one or two employer sponsored plans, employers will provide a fixed amount of funding," said Pricer. "Employees will use that amount in an employer-sponsored exchange to help pay for the level of coverage he or she deems appropriate."
