What. A. Week.
You can't argue that the benefits industry isn't exciting—especially after a week like this. Several important news stories broke recently—more than just the ones about those little Supreme Court cases. Here's a roundup of some things you need to know—and must continue to watch.
1. The subsidies case
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It's official: PPACA's subsidies are here to stay.
The Supreme Court ruled 6-3 Thursday that the subsidies are legal on the federal exchange, upholding a major tenet of the health care law that enables millions of Americans to keep the tax subsidies that help them buy and afford health coverage under the law.
The ruling also means that industry reps will now focus on other parts of the law that bug them, including the health insurance tax, the Cadillac tax and birth control mandates.
Don't miss our coverage:
2. Carrier consolidation heats up
Now that the uncertainty over PPACA's subsidies is over, rumors over the big carriers merging is really heating up.
Bloomberg reports that Aetna is this close to acquiring Humana.
Don't be surprised when a major deal is struck. This has huge implications for the market, so stay tuned.
Read:
3. The same-sex ruling
The U.S. Supreme Court's decision overturning same-sex marriage bans in the four remaining states that had them wasn't just big news for gay couples and supporters; the ruling has big implications for benefits.
The ruling should ease the administrative burden on benefits managers at companies that offer insurance coverage to spouses and partners by offering a sense of consistency and stability.
"Most large employers provide health benefits to same-sex couples so the ruling simplifies plan administration because benefits can be administered and provided more consistently," said Steve Wojcik, vice president of public policy at the National Business Group on Health. "Health benefits must be the same for all legally married couples, and state tax treatment differences go away. In addition, some employers may revisit domestic partner health benefits and scale them back over time."
4. Broker bill
Some possible good news is brewing for brokers in the form of a bill introduced into the U.S. Senate by U.S. Sen. Bill Cassidy (R-La).
Cassidy's bill, S. 1653, would provide access to all enrollment information disseminated by the Centers for Medicare and Medicaid Services. Some materials, such as webinars and newsletters, currently go only to exchange navigators and certified assisters.
It addresses a complaint the broker community has had since PPACA took effect.
5. MLR bill resurrected
There's renewed hope that broker compensation could be separated from the medical loss ratio.
Senators Chris Coons (D-Del.) and Johnny Isakson (R-Ga.) this week introduced the "Access to Professional Health Insurance Advisors Act," which would clarify that agent compensation is not part of the MLR formula as enacted in PPACA.
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