Happy New Year!
2012 is underway and the countdown to implementation, alteration or elimination of Heath Care Reform continues. The outcome? I gave up trying to answer that question some time ago, but I can address a few “if/then” scenarios.
Here’s one: If full implementation of Health Care Reform as passed occurs, will small employers abandon their health benefit plans, pay the associated penalties, and force their employees into health insurance exchanges? Common sense dictates that many will choose that financially-attractive path. But having served the small group market for well over 20 years now, my experience tells me never to underestimate small business – entrepreneurs that relish the ability to determine their own destiny and provide for their employees. The concept of “we’re like a family” may not apply to big business, but it’s alive and well among American small business. So, I suspect the exchanges will have an impact, but they will by no means be a death-knell for the small group health benefits market. Rather, I anticipate there will be continued growth in small group self-funding, as more employers look to exercise even greater control over their benefit plan destiny.
Here’s another: What if the United States Supreme Court strikes down the individual mandate but otherwise allows Health Care Reform to stand? I think this is a very real possibility, and I suspect it will mean the implosion of the health insurance exchange system. Without the individual mandate, health insurance exchanges effectively become state-based high-risk pools. As such, many insurers would be unwilling to participate, or would price their products well beyond the reach of potential participants, even those with substantial government subsidies. What does concern me is government reaction/adjustment to the law in the absence of an individual mandate.
And finally: How will the November elections impact Health Care Reform? As former U.S. Secretary of Defense Donald Rumsfeld so aptly stated (paraphrased): “There are known knowns; things we know we know. There are known unknowns; things we know we don’t know. But there are also unknown unknowns; things we don’t know we don’t know.” You know what? I just don’t know. 
What I do know is that Spectrum continues to sharpen its focus on the small employer market, and continues to hone its products and services to meet the needs of employers and producers in that wonderful market segment. Check the “Latest News” section of this website for highlights on Spectrum’s popular Integrated Stop Loss product, and also for a list of industry events that Spectrum will be attending throughout this year. I look forward to seeing many of you at those events and in my travels. In the meantime, I can always be reached at 800-804-7732 and at k.ridder@spectrumhq.com.
Best of luck on a healthy, happy and prosperous 2012 and beyond.
Regards,
Kurt Ridder
President
