EDIFYHealthcare Reform Update

The Rising Cost of Health Care

“The high cost of health care has created a real burden for the great financial middle class, composed of self-respecting people who are too proud to accept free service

and too poor to be able to afford the costly private rooms, highly paid surgeons, and

the expensive laboratory studies that have done so much to take the guesswork out of

modern medicine and surgery.”

Editorial in the Saturday Evening Post, 1926

History of U.S.

Health Care

Cost Issue

Economic Disparity

Total Health Expenditures as Share of GDP

United States

Quality Issue

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Milliions 38.5 38.2 39.5 41.8 43.1 43 44.4 46.5 45 45.7Percent 15.8 15.5 15.9 16.6 17 16.8 17.2 17.8 17.1 17.3

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ElderlyThe Growing Uninsured Population

Government Growth

as a Payer

EffectOn

Costs

An Early Rand Study Doesn’t See Improvement

$1,500$1,700$1,900$2,100$2,300$2,500$2,700$2,900$3,100$3,300

'10 '11 '12 '13 '14 '15 '16 '17 '18 '19'10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Status Quo $1,623 $1,722 $1,834 $1,962 $2,104 $2,264 $2,440 $2,631 $2,841 $3,066Reform $1,623 $1,722 $1,834 $1,962 $2,148 $2,341 $2,536 $2,734 $2,951 $3,184

2%

The Top 11 Provisions of the New Law That We Get

Questions on at EDIFY

•Grandfathered Status•Individual Mandate•Tax Credit for Small Business•Penalties for Non-Coverage•Auto Enrollment•Waiting Period•Health Insurance Exchanges•New Reporting Requirements•No Cost Sharing of Specified Preventative Health Services•Restrictions on Reimbursement of OTC Drugs•Medical Loss Ratio (MLR)

EMPLOYER ISSUES

With or without healthcare reform employers need to have a strategy for the following:•Productivity•Absenteeism•Presenteeism•Workers Comp•DisabilityThe health status of your employees and their families will have many indirect effects on your business. Wellness, Safety, and Chronic Disease Management are a few of the areas that you can affect.

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