Predictability and Certainty

HR Policy Association believes that the uncertainty and lack of predictability about the eventual shape of the health care system created by PPACA makes it extremely difficult for companies to make long-term plans regarding employer-sponsored benefits.  Health care consumes more than 16 percent of the nation’s gross domestic product and despite the enactment of PPACA (and in fact because of it), that percentage will continue to grow in the coming decade.  Those costs are siphoning off resources that could otherwise be directed towards restoring America’s competitiveness in the global economy and increasing employment security.  

Employers require some level of certainty not only about costs, but also about the rules and regulations under which they will have to operate their benefits programs.  A Supreme Court decision on the merits to legal challenges made against PPACA is a step in the right direction but the future of health care reform will remain uncertain as long as the gridlock in Congress continues and the administration’s implementation efforts on PPACA continue to drag on.   

Accordingly, the executive and legislative branches of the federal government, as well as state governments, need to move as quickly as possible to resolve the substantial uncertainties over the future of the health care system in America.  The sooner the health care reform debate can be brought to an end and a stable system put in place the better so that employers understand their obligations under the law for providing health care to employees, their dependents, and retirees.