UMB Healthcare Services’ CEO Provides Perspective on Affordable Care Act – Entering Year Two
March 25 2011 - 2:56PM
Business Wire
As we enter year two of the Affordable Care Act being signed
into law, there have been many significant changes – with even more
to come. Although it is a divisive issue in our country for many,
it remains the law of the land. The staggered implementation and
extensive timeline mean many of the most critical components of the
law have yet to be realized. However, there have been changes and
relevant observations that are worth discussing.
Dennis Triplett, CEO of UMB Healthcare Services, a division of
UMB Financial Corporation (NASDAQ: UMBF), provides the following
perspective:
“Now that we have reached the one year anniversary of the
Affordable Care Act (ACA) and enter year two, it is likely that
one’s view of health care reform remains highly situational. Senior
citizens on Medicare may approve of the changes because they can
see the ‘doughnut hole’ closing. Parents appreciate the coverage
available to young adult dependents up to the age of 26. For
employers, it is now abundantly clear that providing health care is
no longer an optional benefit, but a legal requirement. Employers
can now either pay for health care directly or face a fine –
indirectly paying for health care.
“Employers that had been ‘on the fence’ waiting for clarity in
the legislation were finally moved to make benefit plan design
changes following the passing of the ACA. While additional clarity
is still needed, the law being enacted was enough of a motivator
for some employers to address benefit plan designs and better
manage rising costs.
“As we entered 2011, the over-the-counter drug restrictions went
into place. Individuals could no longer use flexible spending
accounts, as well as other spending accounts, to cover the costs
for these medications. Many have argued that it is counterintuitive
to ‘punish’ someone who is using less expensive formularies and
instead force them to a doctor for a prescription for an
over-the-counter drug or medicine. This particular change has been
troublesome and is creating a burden for those who were acting
responsibly and saving to better manage their costs for chronic
diseases such as diabetes and asthma. Congress is proposing the
‘Patient’s Freedom to Choose Act’ (H.R. 605 and S. 312) to resolve
this dilemma.
“Finally, as a provider of consumer-directed health spending
accounts, we continue to see a growing interest in health savings
accounts (HSAs). High-deductible health plans partnered with HSAs
are a logical step for employers that want to control rising costs
and promote employee engagement in their own health. These plans
give employees some ‘skin in the game’ and an incentive to not only
better manage their health, but also to be a more educated
consumer. Employees benefit from lower premiums and an incentive to
better manage their health.
“While the merits of the Affordable Care Act continue to be
widely debated, one benefit of reform has been the increased
national discussion on health care. The awareness created prompts
both employers and employees to be more sensitive to better
managing their health care.”
Since the inception of Medical Savings Accounts in the late
1990’s, UMB Healthcare Services has been a financial services
leader in the health care marketplace. Today, UMB is a leader
in providing multi-purpose card technology to the health care
industry, supporting health savings accounts, flexible spending
accounts and health reimbursement arrangements.
Funds in an HSA Base Account are held at UMB Bank, n.a., Member
FDIC.
About UMB:
UMB Financial Corporation (NASDAQ: UMBF) is a financial services
holding company headquartered in Kansas City, Mo., offering
complete banking, asset management, health spending solutions and
related financial services to commercial, institutional and
personal customers nationwide. Its banking subsidiaries own and
operate 128 banking centers throughout Missouri, Illinois,
Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of
the holding company and the lead bank, UMB Bank, n.a., include
mutual fund and alternative investment services groups,
single-purpose companies that deal with brokerage services and
insurance, and a registered investment advisor that manages the
company's proprietary mutual funds and investment advisory accounts
for institutional customers. For more information, visit umb.com or
follow us on Twitter at @UMBFinancial.
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