HR: Health Reform Dates in 2012
The majority of healthcare reform laws don’t go into effect until 2014 when-- individual mandate kicks in, pre-existing conditions end and Medicaid expands to cover 16 million more
Americans. Employers should be aware of certain dates in 2012, though, that could lead to further changes in health care laws down the road.
Five key health reform dates to watch:
- Jan. 1 – ACO’s This month, health-care systems went live as Accountable Care Organizations(ACO) - health reform’s big attempt to bring down the cost of health care by paying for quality of care, rather than just quantity. ACO’s will begin accepting a flat fee for all care related to a small group of their Medicare patients. Their experiment could end fee-for-service medicine — or, if it fails, send lawmakers back to the drawing board.
- March 26 – Affordable Care Act The Supreme Court will hear arguments on the Affordable Care Act to determine whether the mandated purchase of health insurance is constitutional and, if it isn’t, whether or not the rest of the law can still stand. After the Supreme Court hears the case in March, expect a decision by early summer.
- Oct. 1- Reforming Medicare Payments A series of changes to standardize billing will take effect. They will require health plans to adopt and implement rules for the secure, confidential and electronic exchange of health information. In addition, the new law’s value-based purchasing program will take effect. It will tie hospitals Medicare payments to performance metrics. (The higher the quality of care, the higher their payments will be.) Hospitals will also get penalized if a patient is readmitted for a complication/illness that could have been prevented during a previous stay- a bid to reduce unnecessary medical errors that lead to higher costs.
- Nov. 3 - 2012 Election The general election this year could lead to sweeping changes in the White House, Congress and the healthcare reform law. If Republicans gain control of the presidency and Congress, it all but guarantees that big parts of the law will be repealed. But if Democrats stay in power, much of the law could be implemented as planned depending on where the Supreme Court lands on the individual mandate issue.
- Dec. 31 – Health Exchange Deadline By the end of the year states must report on the progress they have made in readying their health insurance exchanges for their 2014 launch. If they haven’t made enough progress, the feds may opt to step in.