Restaurant & Hospitality- 2016 Health Care Challenges
“We’re going to increase menu prices next year, anywhere from 11-55%. Okay?”
How would your clientele respond if you told them, based on the culmination of market shifts and rising operating costs, expect stark menu price increases in January 2017? When they question, “Exactly what prices will you be charging?” You say, “I really don’t know because there are so many variables.”
However, I CAN tell you the trend is going to be significantly higher than previous years. My big prediction is they will rise somewhere between 11-55%.” This is precisely what the CEO of America’s Health Insurance Plans (AHIP) Marilyn Tavenner, former Obama Administration CMS official who oversaw the disastrous Healthcare.gov website rollout, said when asked what 2017 health premiums will look like. Implementing the Affordable Care Act is one of the biggest challenges many restaurateurs and resort owners will ever face.
SIGNIFICANCE TO THE RESTURANT & HOSPITALITY INDUSTRY
The Healthcare Reform Act (HCRA) specifically creates challenges for the restaurant and hospitality businesses.
Providers Pulling Out
Nearly half of the 23 Obamacare insurance co-ops are gone. Now with the announcement that giant, United Health Care intends to exit all but a handful of the 34 states they were in, stress is abundant.
The aforementioned “pull out” of most Obamacare markets across the country creates incredible insecurity. Anticipating future premiums and copayments has now become, at best, risky guesswork.
Out-of-pocket costs will continue to remain a concern among the subsidized and unsubsidized alike. Average deductibles remain high– and may continue to rise– for the most popular ACA plans.
So here are the questions: Will you be able to HOLD BACK RISING Healthcare Costs in 2017?Will you have to downsize your employees? Or, will you be forced to increase your MENU PRICES?
According to the Kaiser Family Foundation (KFF)…
- The Issue: Market Instability. Recent reports of substantial increases from some insurers have led to concerns regarding the stability of the ACA’s marketplaces.
- The Problem:Affordability. Kaiser polls have found the overwhelming reason why people who are uninsured say they are uncovered is cost. Forty-six percent of the uninsured, non-elderly adults say they tried to get mandated coverage, but found that it was too expensive. There is also a severe lack of awareness of financial help that may be available.
Now, According To AccountFirst…
- The Good News: We have the ACA Alternative Solution. If you are stressing over the inevitable rising healthcare costs, if you don’t know HOW to mitigate the Health Care Reform Instability OR if you simply need to get your business overhead under control– large, mid-size or small businesses alike‒ reach out to us today!
We’re AccountFirst and “We Make the Complex Simple”