With implementation of the Patient Protection and Affordable Care Act (PPACA) continuing at a rapid pace, it’s easy to get lost in the proverbial weeds while preparing for compliance.

Local governments face a dizzying array of choices. Consumers are experiencing profound changes in how they purchase products and services, what options are offered to them, and what their potential financial exposure could be. Insurance carriers, health care professionals, and hospitals are all experiencing changes in how they provide products and services.

At Cigna, we strongly feel change represents opportunity. For us, opportunity always revolves around strengthening our relationships – with our local government and other clients. One of the ways we do this is by helping them navigate the changing health care landscape and providing them with the right products, services, and assistance they need at the right time.

• In 2014, new regulations and taxes will increase medical insurance premiums, especially in the Small Group markets.
• As employers sponsoring group plans look to mitigate rising health care costs, they may increase deductibles and out-of-pocket expenses, leaving employees with higher financial risk if they cannot afford the up-front fees for care. Employees may look to employers to provide group or individual voluntary supplemental products, particularly critical illness and accident policies to cover higher deductibles when unforeseen medical expenses are incurred.
• Consumer-centric product solutions are needed to help protect local governments and their employees from financial risk and provide high quality coverage options to address their unique needs.

Regardless of the local government employer’s situation, there is a need for creative medical and supplemental product solutions, bundled together to help provide more personalized coverage and protection against financial exposure and risk. Individuals receiving their health benefits through their employer may seek the financial protection offered by supplemental benefits, particularly as employers shift greater deductible and co-insurance responsibility to employees. Employer-sponsored supplemental benefits provide an easy, low-cost way for employees to obtain additional insurance protection and create additional good will for the employer.

As we continue to develop product solutions that serve local governments and other employers in this ever-changing landscape, you can feel confident that Cigna remains committed to addressing your needs and is taking every opportunity to assist you as we navigate the health care reform waters together.

As we continue to embark on this journey, we are looking to you to let us know if and how the new healthcare law is changing your thinking when it comes to the health insurance offerings provided to your employees.  Watch for an e-mail from ICMA containing a brief survey that will take 10 minutes to fill out. One survey respondent, chosen at random, will receive a free registration to the upcoming ICMA Annual Conference in Boston, Massachusetts. All participants will receive a summary of the results, which will let you know the direction your colleagues are taking.

We also post information about free educational webinars, and notices of new provisions on the Knowledge Network.