| The recently enacted Health Care Reform may raise | | | | High cost plans are the most likely to have infertility |
| insurance premiums, or eliminate benefits for many | | | | coverage. High cost plans are often found in states |
| couples with existing infertility treatment coverage. | | | | with the highest level of state imposed insurance |
| The new law contains an excise tax provision of | | | | mandates. Fifteen states have some form of |
| 40% for so called "Cadillac" insurance plans: high cost | | | | infertility health insurance mandate in place. These |
| employer-sponsored health plans. Insurance plans with | | | | same states tend to have a variety of other |
| infertility coverage are likely to fall into the high cost | | | | mandates to cover as well. Mandates increase health |
| category for a variety of reasons, making it highly | | | | insurance premiums. If your employer sponsored plan |
| likely that these plans will rise in cost, or benefits will | | | | has infertility coverage, chances are good that you |
| be cut. Couples trying to conceive should consider | | | | are in a high cost plan. Therefore, your premiums are |
| their current payroll deductions, state of employment, | | | | likely to increase, or your benefits may be cut. |
| and union membership, to get a sense of what holds | | | | Health care reform and union membership combine |
| for their future. | | | | for an ironic twist. The package was voted in on |
| The health care reform calls for a 40% excise tax to | | | | party lines: Democrats in favor, Republicans opposed. |
| be paid by insurers for plans costing more than | | | | Union members lean heavily Democrat. While the |
| $8,500 annually for individuals, and $23,000 for | | | | excise tax on high cost plans sounds like the typical |
| non-single plans. These costs include what you | | | | "soak the rich" Democratic platform, the reality is: |
| contribute via payroll deduction, what your employer | | | | Union members enjoy the richest health care plans. |
| contributes, plus any amount that is funded by your | | | | Unions fought hard in the past to win top-notch |
| Flexible Spending Account. Many employers pay the | | | | benefit programs for members: benefits paid almost |
| majority of employee insurance premiums. Consider | | | | exclusively by the employer. |
| your employer's contribution when looking at the | | | | Union members will bear the brunt of this excise tax. |
| total cost of your plan. | | | | The insurers will need to pay the tax, pass costs |
| A 40% tax paid by insurers is quite high. | | | | along to employers, who will need to introduce |
| Insurers may react in one of two ways: increasing | | | | employee (union member) cost sharing to help |
| premiums, or cutting benefits. If they raise premium, | | | | balance the books. Union leaders saw this coming, |
| the increase may need to exceed the 40% tax | | | | and negotiated exemptions for certain high risk |
| because the premium increase means a subsequent | | | | occupations (police, firefighters, etc), along with an |
| tax increase. Each premium increase of 40% yields | | | | extended phase for union plans. If your union |
| another 40% tax increase, and so on. Just one 40% | | | | sponsored plan has infertility insurance coverage, |
| premium increase means a tax increase of 56%. And | | | | move fast. Your costs may be going up, or your |
| that comes on top of an already "high cost" plan. | | | | coverage may be cut. |
| Perhaps insurers will look to cut plan benefits, and | | | | Meanwhile, consider using supplemental insurance to |
| premium costs in order to stay under the excise tax | | | | help create maternity leave income, and extra |
| threshold instead. | | | | protection in case of complications, premature birth, |
| You may be asking: what does this have to do with | | | | accidents, and illnesses. |
| infertility insurance? The connection is quite direct. | | | | |