Client Alert

Health Care Reform Provides No Relief for Employers

March 31, 2010

Stephen H. Harris, Eric R. Keller, and Ethan Lipsig

1. Introduction: Those who thought that health care reform should focus on fixing this countrys runaway health care cost crisis will find little reform in the Patient Protection & Affordable Care Act (PPACA) just signed by President Obama. Instead, PPACA creates a vast new entitlement, significantly raises taxes on higher income individuals, and imposes much of the burden of providing the newly mandated coverage on employers. Existing health plans generally are grandfathered, but grandfathered plans are exempt from only some of the new requirements.

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