Ben Conley, Mitchel Whitehead and Nanette Zamost Published in Benefits Magazine
"Health Exchanges and Multiemployer Plans--Can They Exist in Harmony?"

Seyfarth attorneys Ben Conley, Mitchel Whitehead and Nanette Zamost wrote an article published in the February issue of Benefits Magazine. With the most significant and potentially far-reaching changes made by the Patient Protection and Affordable Care Act (PPACA) on their way for 2014, the article explains the basics as to how the exchanges, mandates and subsidies will operate, how they will apply to the delivery of health care and how they can affect the future of multiemployer plans.

The authors identify the main issues multiemployer plan trustees should be thinking about now in order to remain competitive in the shifting health care delivery marketplace, and they offer four takeaways:

• Regulators are looking into determining whether health care reform legislation can be interpreted to allow multiemployer plan participants to access credits and subsidies that would reduce the cost of coverage.
• Regulatory agencies are considering whether multiemployer plans might serve as a multistate plan offered through the exchanges.
• Collective bargaining might result in increased wages in lieu of health coverage, which would further cut into any potential employer savings from dropping health coverage.
• Even if multiemployer plans cannot operate within the exchanges, bargaining parties have good reasons to continue to maintain multiemployer plans.
   

They conclude that, based on the limited information currently available, multiemployer plans "can continue to play a crucial role in the health care system, regardless. Most experts believe a strong private marketplace will still exist in 2014 and beyond. In that environment, multiemployer plans should be able to continue serving the needs of collectively bargained employees."