LTC Consulting Lens: The Healthcare Double Whammy

This is a great new clip from our Vlog!

The President was on fire last week, rolled out 2 potential plans an executive action and
change to cost share reductions. This would mean major changes in health insurance…if it goes through.

Find out about the ramifications and what to expect from LTC Consulting’s very own Steve Shain.

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Steve Shain: Hey everyone, welcome back! So as you’ve heard, the efforts to repeal and replace
Obamacare didn’t really work out too well; they were close but no cigar. Repeal and replace didn’t have
enough votes so therefore Obamacare is back as the law of the land. Everybody said – OK, that’s how
things are going to be for now. Well that’s what we thought, but last week all of a sudden the president
drops these bombshells. An executive action that he’d like to put in place, the changes in the cost-
sharing reduction. Two bombshells in one week…Mr. President, I think you’re the one that should be
called Rocket Man. But anyways, these changes. What are these changes exactly? The executive action
is basically trying to make everyone currently in the healthcare marketplace under Obamacare to see
some much prettier options out there that they would want to join for insurance plans and insurance
coverage instead of Obamacare. These are association health plans, which are health plans that can be
run by small businesses that will allow them not to be held down by many of the state guidelines and
state minimums, they won’t even be held down by state borders. They can cross state borders and
therefore make the healthcare marketplace much more competitive, with many more options out there.
Short term plans that used to only be working for about 90 days would now be able to be extended to
about a year. So again, these plans were not ones that were held down to the same guidelines that
other health insurance plans were and therefore, they’re going to be the ones that are more appealing.
They’re going to be cheaper and they would have better options again, for the healthier population. So
with these kind of options coming up it’ll make a decision for many of the people who are currently in
the marketplace not to really jump in there. And the second thing is this cost-sharing reduction, which
basically is a subsidy that the government was giving to insurance plans in order to help keep down co-
pays, deductibles and premiums that they were offering to their members. Now that that subsidy would
go away, it would make it that much more difficult for the insurance plans to keep these plans active.
So, with open enrollment coming up in a couple of weeks, it’s something that really blows things up and
it’s interesting to see that the timing of this was so interesting how it’s played out but no need to worry
it’s probably not going to make any changes today or tomorrow, it’s probably going to be six months to
nine months before we hear anything. We’re already hearing from the attorneys general in New York
and California – yes attorneys general, that’s how you say it – but these attorney generals are already
working on a lawsuit to go against any of these decisions that they may want to put in place. So there’s
definitely going to be push back, and probably expect that there’s going to be some push back, or a lot
of push back, and therefore nothing is going to happen overnight. And as the former CEO of Aetna, Mr.
Ron Williams was quoted saying in the news that nothing drastic can really happen because there are
many federal reviews that need to go into place in order to see that this law or potential law is
something that could be feasible and something that’s not going to leave anybody high and dry without

any real feasible options so you should expect probably that it’s not going to be as drastic as the
president wants and it’s not going to be as toned down necessarily as the Democrats want, probably
something in the middle. We will be obviously following this to see how it turns out. I’ll keep you posted
and of course you have any comments or feedback let me know so we can make this better for you.

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