Open Enrollment and Health Care Reform-Update

Two weeks ago, I was getting concerned about the lateness of the open enrollment period for health insurance for the company I work for.  I had been concerned that the lateness of the enrollment period had something to do with the health care bill that was passed earlier in the year.  I was also concerned that the lateness was an indication that our share of the cost of insurance was going to go up significantly or our choices would be curtailed significantly.  Today, I received a letter from my company regarding open enrollment.  Below is the basic text of the letter.

Dear Medical Plan Participant:

As you have been hearing in the news, the Health Care Reform Bill mandates substanial changes for health care industry as well as employer-sponsored health plans over the next several years.  Accordingly, the medical plan changes XYZ Company must make for 2011 include;

• the removal of lifetime and annual limits on certain benefits,
• coverage for certain preventative care services at 100%, and
• offering of coverage for children to age 26 regardless of student status.

Since the enactment of the Bill in March, there has been intense focus by XYZ Company Senior Management on health reform and the related cost increases.  Significant analysis has been completed to determine the impact on our associates, the medical plans, and the business.  In order to make all of the necessary changes to the health care plans, the timing for annual enrollment has changed and will begin on November 29th.


In keeping with our current strategy, the Company will continue to share in the increased cost of medical inflation for 2011.  However, in these difficult economic times, the Company cannot fully absorb the combined increases of health care reform and medical inflation.  Therefore, the XYZ Company medical plan rates listed on your Annual Enrollment Worksheet will be higher than in previous years.  Increases will vary based on the medical plan and coverage level you elect.

There were a couple concluding sentences about considering all your choices and your personal situation when making your choices, but the above is the pertinent info from the letter.  It basically confirmed the bulk of the my suspicions that the delay was due to the the health care bill and that we were going to stuck with an increase of our share of the bill.  The question remains as to how much of an increase.  Though I must say after receiving a letter like this, I suspect it will not be a small increase.  Another reason I expect to see the GOP regain control of the House tonight.

Related articles

• Three Steps Employees Must Follow Now to Maintain Their Health Care Benefits During Open Enrollment (eon.businesswire.com)
• Companies Clearly Won't Stop Hiking Health Care Coverage Premiums (thehealthcareblog.com)