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Health-care ruling brings some clarity, local providers say

The Blade

Health-care ruling brings some clarity, local providers say

After what seemed like weeks of speculation, there is clarity for the future of health-care reform in America.

Health-care providers say the Supreme Court ruling to uphold the President's health-care overhaul, while basically keeping the status quo since the legislation passed in 2010, helps solidify what will happen in the coming years.

"I think it brings a combination of clarity as to where we will stand at least for the immediate future, and secondly, it should energize -- hopefully -- responsiveness to the detail contained within the [Affordable Care Act]," said Dr. Jeffrey Gold, chancellor and vice president for biosciences and health affairs at the University of Toledo Medical Center, the former Medical College of Ohio.

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The act is complex, touching nearly all aspects of the health-care system. Though many say it likely will take years before the impact is felt, consumers will see big changes in about a year and a half.

Starting in 2014, Americans must buy health insurance or face a penalty; insurers cannot turn away people or charge more if they have pre-existing conditions. Lower-income and many middle-class families will be eligible for subsidies to help with premiums.

With the ruling, young adults up to age 26 can stay on their parents' policies.

"For many employees, there was some confusion of what happens if the thing is struck down," said Bruce Davis, a principal in the Toledo office of Findley Davies Inc., a human resources consulting firm. "I think today's ruling relieves some of that anxiety. We're still left in a situation where health-care costs will continue to rise. We need to meet those challenges. All those issues remain. But I think it paves the way for more decisive planning on the part of employers."

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A nationwide survey found most firms unprepared to deal with the ruling, whichever way it went: 82 percent had no formal plan in place.

Many said that doubt over the law had them postpone decisions, including hiring. "One of the things we've been saying to clients all along is that you can't afford to stand still," Mr. Davis said.

He did say to watch whether businesses use more part-time workers to avoid costs. Starting in '14, firms with more than 50 full-time workers will face fines if they don't offer health coverage.

The Toledo Regional Chamber of Commerce said the ruling helped let firms know what to expect. "...Businesses can now concentrate on how to comply with the law's many reforms," its statement said.

Officials with ProMedica, Mercy, and UTMC said the decision doesn't greatly alter their hospitals' paths.

"In many ways, it really doesn't modify ProMedica's strategy as a not-for-profit, mission-based health-care provider," said Lee Hammerling, ProMedica's chief medical officer. "We've always provided care to the insured or uninsured, regardless of their ability to pay.

The law is expected to provide coverage to about 30 million Americans who do not have health insurance.

Dr. Ken Bertka, vice president of physician clinical integration at Mercy, said that is important. "The expansion of coverage to those who do not have insurance is huge. It's very important for a health system such as Mercy where caring for the underserved or those without insurance is not just what we do, it's part of our mission. Right now, we struggle how to best do that and not get paid but still do it. … The anticipation has been and now continues to be at some point down the road beginning in 2014, some of the people who today have no insurance will have insurance."

Hospital stocks rose sharply after the ruling guaranteed millions more paying customers. Some insurance stocks fell in choppy trading as investors fretted about the costs of rules in the law. "For the hospitals, it means that they get payment and they get more potential customers," said JJ Kinahan, chief derivatives strategist for TD Ameritrade.

Insurers "have to be less selective of their clients, which is bad for them," he said.

The stock of Hospital Corp. of America, the largest private hospital chain in the United States, closed up 11 percent.

Contact Tyrel Linkhorn at: tlinkhorn@theblade.com or 419-724-6134.

First Published June 29, 2012, 5:06 a.m.

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