The affordable care act: Alaska businesses prepare for health care reform.

• Author: Orr, Vanessa
• Position: HEALTH & MEDICINE

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"Providence entered into the health reform debate with certain priorities and principles, the most important of which was Providence's belief that health care is a basic human right."

--Joel Gilbertson, Vice President, Government and Public Affairs Providence Health and Services

Congress passed the $875 billion Affordable Care Act in March. While only a handful of provisions in the law will affect next year's benefit plans, companies in Alaska are already working to understand what this legislation means in the short--and long-term.

Plan years starting on or after Sept. 23, 2010, must provide certain benefits, which include no lifetime limits on coverage for all plans, no rescissions of coverage when people get sick and have made an unintentional mistake on their applications, and extension of parents' coverage to young adults under 26 years old. Those who get health insurance through employers also receive benefits, including no coverage exclusions for children with preexisting conditions and no "restricted" annual limits.

COMPLEX BILL

"This is definitely one of the most complex bills that we've encountered in quite awhile," said Mike Humphrey, director of benefits, University of Alaska. "Health and Human Services (HHS) is still developing regulations, so we've not yet been able to fully assess all of its impacts. I believe that the reform plan will continue to evolve over the next seven or eight years--with 2,700 pages of regulations, it will generate untold volumes of clarifications."

According to Humphrey, the first impacts of the new health care law will be felt on the university level on July 1, 2011.

"While the university is self-insured, Premera Blue Cross processes our claims and Caremark takes care of the pharmacy portion," Humphrey said. "The university is developing plan models to present to those companies to make sure that the plans fit within their frameworks. As we roll out ideas, we'll also be talking to our employees, faculty and staff about the different directions these plans could go."

ADDED BENEFITS, ADDED COSTS

While some employees may be pleased with the added benefits that come with health care reform, others may be more concerned with the added costs.

"Employees are definitely keyed in on the cost component, but at same time, see the additional coverage as a good thing," Humphrey said. "New benefits include employees' ability to cover dependents 18 to 25 on their health...