New reports speculating on the future of the Affordable Care Act have come out almost daily since America elected Donald Trump to be the next president. Here at Delta Dental, our leadership involved with health care reform breaks down what all the hubbub may mean for the dental benefits industry in 2017.
Clients and enrollees won’t feel effects of any major changes for a few years
No “significant change to the health care market—medical or dental” is expected for three or four years, says Jeff Album, Delta Dental’s vice president of Public and Government Affairs.
“Repeal and replace has changed to repeal and delay,” Album says. “It’s clear that both Congress and the new administration are going to want to minimize disruption to the existing system.”
Album expects Congress will take action early in 2017 to defund parts of the law, but postpone when that takes effect. In the meantime, lawmakers will determine how the replacement will look.
As the new law is developed, he says, Delta Dental will take an active role by helping the industry “define its advocacy agenda” in terms that best serve existing and prospective customers’ needs.
Health Insurance Tax could be modified or repealed in 2017
Early this year, Album says, Congress will likely seek to find common ground on the future of taxes associated with the law, including the Cadillac tax and the health insurance tax (HIT). The HIT tax, charged to insurance carriers based on premiums earned, was put on a one-year moratorium for 2017.
The fate of the HIT is the “biggest question” this year for the Actuarial and Underwriting departments at Delta Dental as they prepare for 2018, says Tom Leibowitz, vice president and chief actuary.
Overall, Leibowitz says he expects rates for dental benefits will continue to stay largely stable for 2018.
“Unlike health care, dental had fairly small impact on rating requirements from the ACA,” he says, “so those huge cost increases that have been seen on the public exchanges for medical are not taking place in the dental world.”
Public exchanges are sticking around for now, and Delta Dental will stick with them
Delta Dental and its affiliate companies have already started work on 2018 exchange plan offerings.
“We are committed to the exchanges as long as they’re a viable platform through which we can sell standalone pediatric and family dental plans,” says Andrea Fegley, vice president of Legal & Regulatory. “Participation in public health care exchanges aligns well with our mission to advance dental health and access.”
Public exchange benefit offerings complement Delta Dental’s existing business strategy, adds MohammadReza Navid, vice president of Sales.
“Regardless of the ACA’s future, Delta Dental will continue to find innovative ways to increase dental access for all,” Navid says.
Both agreed that the company’s planning and strategic initiatives will keep Delta Dental at the forefront of the industry.