June 09, 2015

USAE interviews Juliana Reno on rising health insurance costs for nonprofits

2 min

Venable partner Juliana Reno was interviewed in a June 9, 2015 USAE article on the increasing costs of healthcare coverage in the nonprofit sector. Beginning next year, employer group health plans will have to implement individual out-of-pocket maximums (OOP Max) at all levels of coverage. The article heavily cites a June 2 client alert written by Reno and partner Thora Johnson.

"By its nature, the new rule will increase the cost of health coverage," said Reno. "Since I'm not an actuary, I can't tell you whether the increase related to this particular issue, standing alone, will be substantial or not. However, the overall trend is for the cost of health insurance to increase, and for that increase to outpace inflation. So, at the very least, the increase as the result of the new rule will exacerbate rather than moderate the trend."

Reno added, "Nonprofits with non-grandfather health plans will have to change the terms of those plans to comply with the new rule, and will have to change the various documents that communicate this change to the employees…The nonprofits probably will not have sole responsibility for implementing these changes. The terms of most health plans and the communication documents are usually (but not always) prepared by the insurance company of third-party administrator."