U.S. employers have little faith the Patient Protection and Affordable Care Act will do anything to stem health care costs; in fact, an overwhelming 94 percent believe it will actually increase costs, according to analysis from consulting firm Towers Watson.
What's more, 61 percent believe it won't encourage healthier lifestyles and 73 percent believe it will have either a negative or no impact on the quality of care.
[See related: Health care reform won't curb rising health costs, employers say]
"Employers are currently weighing the short-term challenges and long-term opportunities of the new law," says Mark Maselli, North American health and group benefits leader for Towers Watson. "While many employers have not yet assessed the full impact that reform will have on their businesses, they do realize that the responsibility to hold costs down will fall primarily on their shoulders."
In order to cope with anticipated cost increases, many employers plan on:
- Passing on increases to employees (88 percent)
- Reducing health benefits and programs (74 percent )
- Absorbing costs in the business (33 percent)
- Passing on increases to customers (20 percent)
Still, employers remain committed to initiatives aimed at keeping their workers healthy. Only 12 percent said they will eliminate or reduce their wellness/health promotion programs in the wake of health care reform, and 48 percent believe that reform will increase employer offerings of wellness programs.
Employers also expect health care reform will result in an increase in adoption of total replacement consumer-directed health plans (58 percent), and transparency of provider prices (37 percent) and of provider quality (35 percent).
