You must now "O-Bey"...

The U.S. Supreme Court decision on the Patient Protection and Affordable Care Act (PPACA) marks a historical event for the healthcare industry.

However, while many will be analyzing what effect the ruling may have on the future of healthcare; one outcome we must focus on is how we can bring value to employer clients.

Potential drivers for healthcare policy:
1.The 2012 election will pave the way for entitlement reform, no matter who is elected.
2.The Supreme Court ruling.
3.The states implementation of PPACA. Even if ACA is ruled unconstitutional, the potential exist that liberal states will implement their own version…about 20.
4.The biggest driver of healthcare in this country over the next several decades will be our national debt.

Both parties are hurling this country toward a fiscal cliff. National health expenditures have reached $2.6 trillion and 49% of that $2.6 trillion is paid by public sector programs. By 2020, national health spending is expected to reach $4.6 trillion and comprise 19.8 percent of GDP, a phenomenon that Warren Buffett describes as a “societal tapeworm.”

The end result will be a blend of alternative funding strategies with a decrease in traditional fee-for-service reimbursement for healthcare. Whether this change occurs two years from now or 10 years, it is coming, and will be led by employers groups, followed by Medicaid, and last in line will be Medicare. The great news is that we as an organization are poised to lead the industry in the changes employers need to improve workforce health and bend the long term healthcare cost curve.