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TMCNet:  MagnaCare Provides Post-Election Analysis, Emphasizes Continued Provider Integration and Organization

[November 14, 2012]

MagnaCare Provides Post-Election Analysis, Emphasizes Continued Provider Integration and Organization

NEW YORK & TINTON FALLS, N.J. --(Business Wire)--

MagnaCare, a healthcare services company, announced today its post-election analysis, emphasizing that provider integration and organization will continue, and outlining the newly solidified implications of the Affordable Care Act (ACA) for companies, insurance exchanges and labor unions.

"With penalties being significantly less expensive than providing coverage, employers with fewer than 100 employees will be financially incentivized to drop health coverage -- especially for unskilled labor," says Joseph Berardo Jr., CEO and president, MagnaCare. "Likewise, individuals will forgo buying coverage and risk the $95 penalty. Generally, those who qualify for subsidies will still not have enough disposable income to buy insurance and then file a tax return to receive their subsidy."

Berardo adds that it's unlikely states and the federal government will be prepared for the administration of exchanges for the open enrollment period scheduled for one year from now, which will force an extension on the deadline. In addtion, he predicts that the grandfathered status for Taft Hartley Funds will have to be extended to offset a rise in the uninsured ranks. Furthermore, these plans cannot afford to cover unlimited plans.

Thomas B. Considine, chief operating officer, MagnaCare, adds, "As the penalties rise in the years to come, the pressure will build to 'play' rather than 'pay.' Post-election, the flexibility shown by Health and Human Services while the healthcare law was pending will evolve into a greater determination to implement its provisions exactly as envisioned. In my view, the federal government wants the broadest federal exchange possible."  

About MagnaCare

MagnaCare, a healthcare services company, is proactively reducing the cost of healthcare by offering self-insured options to employers in New Jersey and New York. For more than 20 years MagnaCare has provided services to self-insured employers and health, workers' compensation and no fault payers, including commercial insurers, TPA's, government entities, and labor markets. MagnaCare offers access to a broad provider network, predictive modeling analyses, member outreach programs and integrated solutions that include full plan management services. MagnaCare was selected to the esteemed "Modern Healthcare's 2010 and 2011 Best Places to Work in Healthcare." Visit www.magnacare.com, www.facebook.com/magnacare, www.linkedin.com/company/magnacare, http://blog.magnacare.com.

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