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Hewitt Launches New Solution to Help U.S. Companies Model Impact of Health Care Reform on Employer-Based Plans

Customized Assessment Helps Employers Evaluate Potential Scenarios, Cost Impact, and Design Changes Under New Health Care Legislation

Oct 28, 2009

Oct 27, 2009
11:21pm

LINCOLNSHIRE, Ill.—As the U.S. Senate and the House of Representatives move closer to a floor vote, final details are emerging on legislation that would bring the most sweeping changes to the U.S. health care system since the passage of Medicare in 1965. Hewitt Associates, a global human resources consulting and outsourcing company, today announced the rollout of its Health Reform Impact Model, a customized assessment that helps companies understand the potential design and financial impacts of this groundbreaking legislation on their existing health care programs and future health care strategies.

"Federal health care reform may affect virtually every aspect of a company's health care strategy, from pretax cafeteria plan offerings and health care spending accounts to retiree drug coverage subsidies and cost," says Ken Sperling, global leader of Hewitt's Health Management practice. "Employers need to analyze the changes that are coming so that once reform is enacted, they are able to move quickly, with minimal disruption to their workforce, while fully assessing the cost and administrative implications of the changes they need to make."

Hewitt has been actively engaged in the health care debate, providing testimony, real-world data and perspectives to congressional committees and clients to help demonstrate the impact of reform plans on current employer-based health coverage. Hewitt's Health Reform Impact Model combines Hewitt's extensive research and employer trend data with its consulting and administrative expertise, to help employers:

  • Assess whether their current health plans offer employees and their families coverage that will allow them to satisfy an individual health insurance mandate and avoid paying penalties. 
  • Determine how the excise tax on certain high-cost insurance plans may impact their employees, union agreements and their administrative procedures and costs.  
  • Evaluate whether an employer may be liable for penalties under proposed health care regulations, and, if so, assess the impact of these penalties on the company. 
  • Create strategies for redesigning and re-pricing disease management and wellness programs to take advantage of any new incentives offered under health care reform. 
  • Assess the impact of new health care laws on retiree coverage, Medicare Advantage plans and the retiree drug plan subsidy. 

"The debate is not over, but the general framework is becoming clearer," adds Sperling. "With a general sense of the impact health care reform legislation will have on employer-sponsored health care plans, companies can move forward with strategies for 2010 and beyond that are likely to fit within a post-reform landscape."

About Hewitt Associates
Hewitt Associates (NYSE: HEW) provides leading organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt works with companies to design, implement, communicate, and administer a wide range of human resources, retirement, investment management, health care, compensation, and talent management strategies. With a history of exceptional client service since 1940, Hewitt has offices in more than 30 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visit www.hewitt.com.

Media Contacts:

Maurissa Kanter

,  Hewitt Associates,  (847) 883-1000


MacKenzie Lucas

,  Hewitt Associates,  (847) 883-1000

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