As President Obama addressed the nation on health care reform, EA convened a panel discussion about the future of our health care system and how it will affect the nonprofit sector.
Almost all sides agree that the current health care system is broken, however deep political divisions and looming mid-term elections continue to stall progress. Whatever the outcome, nonprofits will be greatly affected.
A few ways nonprofits will be impacted if reform fails:
- As employers, out-of-control health care costs will burden our financial stability
- Growing problems of lack of access to health care will increase demand for nonprofits that provide human services
A few ways nonprofits will be impacted by proposed reforms:
- Nonprofits with 10 or fewer employees will receive incentives up to 25% of the employer's contribution toward the employee's health insurance premium. This is in contrast to a 35% tax credit that for profit businesses would receive. (Under Senate Bill and President's Proposal)
- Through a temporary reinsurance program, employers will be reimbursed for 80% of retiree claims. The retiree must be over 55 and not eligible for Medicare. Payments from the reinsurance program will be used to lower the cost for enrolles in the employer plan. (Under Senate Bill, House BIll, and President's Proposal)
- Employers with 50 or more employees will be fined if they fail to offer health care coverage (Under Senate Bill and President's Proposal)
- Employers will receive grants for implementing wellness programs. (Under Senate Bill, House Bill and President's Proposal)
- Medicaid will be expanded to adult males without children. This would change the demographics of demand that many human service nonprofits face. (Under Senate Bill, House Bill and President's Proposal)
- If successful, reform could lower overall healthcare costs to employers
What do you think?
Let us know if there are other ways that you think health care reform (or lack thereof) will affect the nonprofit sector.