The Road Ahead: The Affordable Healthcare Act’s Impact on Credit Unions

by. Kevin Lytle, VP, Innovation & Business Development, LEVERAGE

There is a famous quote I think of when I feel the world is passing me by, “When you don’t know where you are going, any road will get you there.” Now Lewis Carroll wasn’t thinking about healthcare when he said this in the late 1800s, but what he did know was that one needs to have a specific goal or destination in mind before progress can be made.

The Affordable Healthcare Act, better known as “Obamacare,” is coming at credit unions, and there is no rational reason to think it won’t. While many states are fighting the implementation of Obamacare, there are also those that thought Obamacare might not make it at all or at least be delayed. That is not the case and every business, credit unions included, needs to understand what Obamacare means and how it will affect their credit union.

It’s clear that the access road to healthcare will change dramatically in the near future. The question credit unions are pondering is how it will affect them and how will it affect what they offer their employees. Right now it looks like most credit unions with less than 50 employees do a good job of providing excellent healthcare benefits. Most likely better than what Obamacare will mandate. Credit unions with more than 50 employees might be impacted more. They are the ones that could have to pay the penalty tax if the care they provide is not up to Obamacare standards.

There is a lot to sift through.  We haven’t even talked about health insurance exchanges, which can be complicated. LEVERAGE has a good history of understanding vendor management; that’s why we are actively exploring the various roads for credit unions, members, and select employee groups to follow to ensure compliance with the act and reduce healthcare costs. One thing is certain, credit unions need to prepare for the implementation of Obamacare. Sitting by and waiting to see if your state government will overturn it or throw out pieces is not a good strategy. We will keep you informed of our progress and communicate all significant decisions made by our federal and state governments.

The road we’re on now may not be the road that takes us to where we need to get to with healthcare, but it is a good start down the right path. Another way to look at Carroll’s thought is that without a destination one tends to wander. Too much is at stake to not have a plan for healthcare.

Kevin Lytle

Kevin Lytle

LEVERAGE, the Service Corporation for the League of Southeastern Credit Unions, is the business services provider that leverages credit union system resources, relationships, and industry knowledge for optimal performance and ... Web: Details