Pub. 15 2016-2017 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 4 , 2 0 1 6 24 new jersey auto retailer T he health insurance market is an ever-changing environment, and this is certain to continue over the next few years, after President-Elect Trump takes office. The Affordable Care Act (ACA) has been a driving force since its inception in 2010, with changes still taking place on what seems to be a weekly basis. However, with the pending Republican stronghold on both the executive office andCongress, theACA’s days may be numbered.What replaces theACA, or what modifications are put into place, are as yet unknown. What IS known is that changes are coming to employer-sponsored health insurance, and those changeswill impact us all. The purpose of this article is to identify trends seen over the past year, and to lay out some of the expectations for 2017. In 2016, we saw several emerging or continu- ing trends fromboth employers and insurance companies. Employers have been embracing consumer driven health plans (CDHP) at a more significant rate. Many employers who moved incrementally towards CDHPs, took a more aggressive position in 2016. This often meant offering a true HAS-compatible High DeductibleHealthPlan (HDHP), and funding some portionof the upfront deductible through either a reimbursement model or by offering employees a debit card. Health and Wellness programs also saw an expansion in 2016. In a recent survey by HUB International, 65% of midsized companies with 50-1000 employees are using wellness programs to help mitigate claims costs, and keep employees healthy and productive. Early detection equals lower claims, andmany employers are seeing real results in terms of reduced renewal premiums from the proper execution of a wellness program. Incentives are the key driver, and by rewarding desirable behavior, employee participationwill increase and return-on-investment will grow. Surprisingly, slower than expected growth in theuseof technologyaroundemployee benefits programs was seen in 2016. Many believed, The State of Health Insurance – a Look Back and a Look Ahead BY BRUCE MAZZARELLI