Reform Stalls But Moving On Not an Option for Employers

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Reform Stalls But Moving On Not an Option for Employers
Calendar28 March 2017

Last week Republican leaders abruptly canceled a House vote on the proposed American Health Care Act (AHCA) because it was clear that it wouldn’t pass. At a March 24 press conference, Speaker Paul Ryan, R-WI, said that the party will now "move on" to tax reform and other policy priorities.

While “moving on” might be an option for Congress, it isn’t an option for employers who collectively provide health coverage to 177 million Americans and spend over $660 billion annually on health benefits -- more than federal spending on Medicare. Given that healthcare spending rises faster than inflation, it has been an ongoing challenge for employers to provide their workers with comprehensive, affordable coverage.

But there is reason to be optimistic. In recent years, we’ve seen overall health benefit cost growth slow, and some employers have made remarkable progress in bending the trend with breakthrough strategies. We believe there are steps that employers of any size can take to make a difference in their own programs -- and that ultimately these actions will drive change in the larger US healthcare system. We are working with employers to lead meaningful change through a collective focus on these four vital aspects:

  • Pay for Value: Align reimbursement with value, not volume.
  • Drive to Quality: Deliver the right care at the right time, in the right setting, error free.
  • Personalize the Experience: Leverage data and technology to help employees make better healthcare decisions.
  • Embrace Disruption: Leverage constant changes in the system -- with internal stakeholders and external partners -- to be future-ready.

Of course, true transformation will require change and cooperation from other players in the healthcare system -- including the federal government. That is why we will continue our efforts on the Hill, pushing for policies that address the underlying causes of healthcare cost growth, new health savings account rules, and the repeal of the Cadillac tax.

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