Where do things go now?

Last night the President spoke about the economy, jobs, education and then health reform. So is it an important item--yes. Though it is just not quite as important as having a job and lowering debt. Nonetheless, health care reform is not dead. In fact, the shock from Mass. may just be the tonic that allows health reform to become law and be palatable to the general population.

Surveys show that Americans are skeptical of health reform. However, when separate items are broken down in these surveys, Americans move notably in favor of the individual elements of health reform. As with many things, people are concerned with broad sweeping changes that they don't understand--when it is unpacked often they are more accepting of the change.

Our take:
Leaders will take a more pro-active approach to educating on reform. This will mean largely changes in insurance regulations. Americans don't like insurance companies and will support (right or wrongly) those types of adjustments. Note the attacks on the banks and bank executives--easy targets.

Health reform will still occur in 2010--when and how we aren't sure. Unfortunately it probably doesn't involve reform of all areas of our health care system.

It will impact employers and create more administrative burden and potential liability.

The current health environment is not sustainable--this is important to remember.

Still more to come...

Vote on Tuesday--is it important

The election to replace Ted Kennedy is one to watch--or so they say. If the Republican were to win then the Senate would have 41 votes and health reform may be cut off at the finish line. If the Democrat were to win--well things will probably move forward. However, if the election is close--it may sway a few (on the Senate side it will only take one) Democrats to retreat on voting for reform. Another thing to watch--if the Democrat were to win by 53% of more--watch for that to be noted as an endorsement for reform.

As for reform--one important item to watch is for the House to ultimately approve the Senate version. If this happens then there are no future roll call votes in the Senate and the President can sign the bill into law. House members may force some issues at that point in a procedural move related to the budget called reconcilation. We have discussed this in the past.

As we have said from the outset--we expect reform to happen. Granted it appears more and more like insurance reform as opposed to reforming all parts of the system.

For our clients--employers with less than 1000 employees--this means more paperwork, more rules to follow and more confusion for employees. We are intent on focusing on these issues and developing clear understandings of how to navigate through these issues. Already we are at work on education seminars for early spring.

more to come...