Employers are still torn on how they will respond to health carereform, but a survey from GfK Custom Research North America saysmost are, at the very least, skeptical of its potential.

|

Though the majority of employers surveyed (56 percent) say thatthey’re likely to continue to offer employer-sponsored healthinsurance after health reform is enacted, 12 percent of benefitsdecision-makers say they would be very or somewhat likely to dropcoverage. And many—32 percent—of the 502 private-sector companiessurveyed are unsure what they will do.

|

Projections vary by the size of the employer, with only 4percent of decision-makers surveyed from those companies with 500or more employees considering terminating coverage completely. Inaddition, decision-makers who say they are familiar with healthreform are less likely to foresee their dropping coverage (7percent, versus 15 percent among those not familiar).

|

Many surveyed worry reform provisions either won’t slow theincrease in health care costs or will make cost trends worse.

|

Only 11 percent believe costs of health benefits will increasemore slowly than if no reform had passed, while 51 percent thinkthat costs will increase more rapidly. Many remain uncertain aboutthe impact of health care reform, with 38 percent not sure aboutthe effect of health reform on future costs.

|

Support for health reform is lacking from those surveyed whohave experienced the greatest recent cost increases. Those who haveexperienced the highest recent price increases are also the leastlikely to see health care reform as potentially improving thesituation. Thirty percent say they have seen costs increase by 9percent or more annually over the last three years, and thesecompanies have the most negative attitudes toward healthreform.

|

As employers have seen spikes in the cost of offering healthcare benefits, many report they have reacted by increasing premiumcosts, co-pays and deductibles for employees and dependents. Withhealth care costs continuing to increase in recent years, 20percent of employers say they have even seriously consideredcessation of health care benefits.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.