There's a change of venue for the golf tournament to Brookridge Golf and Fitness which is open for registration and has some attractive sponsorships. As in past years, the success of this charitable event hinges on your sponsorship and participation. The benefactor this year is Newhouse. If you attended the February luncheon, you heard Kathy Stone recite her poem that tells her own story of domestic violence. Kathy is now the executive director of Newhouse and helps others who have suffered in abusive relationships.   Additionally, 100% of the proceeds from your purchases of mulligans go to this important nonprofit organization. In every way that you give, EBPA matches that amount to double the donation. Come out for the afternoon and enjoy the game, food, beverages, reception with prizes (more food and beverages) and the camaraderie of your peers!

It could be a soap opera, but unfortunately it isn't, as the healthcare world twists down the long and winding ACA path. In the most recent political events on Capitol Hill, the Republican majority Senate voted along with their House counterparts to pass budget blueprints setting the stage for a major clash with the White House over the framework of the national healthcare system along with appropriate levels of taxing and spending. Gaping key issues are unclear. However, as Congress reconvenes and if they can agree on a budget, they may avoid a Senate Democratic filibuster and be able to move forward with their plans to pass legislation to repeal and replace the ACA, if the U.S. Supreme Court strikes down premium subsidies in nearly two-thirds of the states. No matter which side of the aisle you're on, there is more to come with the Supreme Court's vote in June.

To my fellow board members, it's a pleasure working alongside such honorable and professional people. As busy as you are attending to your own businesses and clients, you continue to raise the bar through all your efforts in your service to EBPA.        

Denise Lambert
EBPA President 

The motivation behind the Cadillac tax is to encourage the adoption of cost effective plans and transform employees into better healthcare consumers by reducing overuse of healthcare services. Some would suggest it's a way to reduce the number of health plans offering little to no cost sharing or premium contributions. By reducing premiums that are generally tax exempt, employer and employee tax liability is increased thus raising revenue to help offset the cost of ACA. As coverage providers reduce their offering of high-end plans, this seemingly levels the playing field by ensuring Americans have equal access to healthcare. Proponents are concerned about cost-shifting and calculations being tied to overall inflation vs. medical inflation. The Congressional Budget Office (CBO) estimates $120billion will be generated in excise tax between 2018 - 2024.

With wage freezes among the public and private sectors in recent years, many employers have chosen to partially offset this by offering expanded health benefits which will be different in light of needing to slim down coverage. There is some indication that the private sector is shifting to less generous coverage while adoption in the public sector has been slow. State and local governments are becoming increasingly concerned about the financial burden which will affect their ability to attract and retain talent, provide essential public services, and negotiate union contracts - all of which have the potential to raise local taxes.

Many employers have already assessed their potential tax burden liability in light of their current benefit and cost structure, accounting for the estimated inflation impact. Some options which may be available to health plans in order to come in under the excise tax threshold include increasing Deductible and/or Out-of-Pocket amounts, lowering premium and/or HSA, FSA, and HRA accounts contributions, implementing wellness and/or medication therapy management services, and providing members with health coaches and tools to assist them in locating the most effective healthcare providers.

Lobbying to repeal or make changes to this aspect of the ACA by various parties has already begun and is expected to accelerate in different forms on both sides of the aisle as 2018 draws closer. While more detail is expected at a much later date, thoughtful conversations should be had among insurers, plan administrators, Third Party Administrators and their consulting partners to assess the plan's options.