In a time of uncertainty—as we wait for the Supreme Court ruling on the PPACA—and mixed information on whether employers will drop health coverage or not, one employer survey paints a rosier picture than most.
According to a survey from the International Foundation of Employee Benefit Plans, most—86 percent—of single employers and corporations will or are likely to continue to provide health coverage to their employees in 2014.
“These employers recognize that offering health care coverage is an important benefit that helps retain current employees, attract future talent, and increase employee satisfaction,” says Michael Wilson, International Foundation CEO.
Just one percent of the respondents will definitely not provide coverage to all full-time employees in 2014, the research shows. Among the 54 percent of employers that didn’t state that they will definitely continue to provide coverage to all full-time employees in 2014, the most likely cause for discontinuing coverage would be the cost of providing coverage becoming too expensive (45 percent).
In anticipation of the Supreme Court’s upcoming ruling on the PPACA, the International Foundation surveyed 968 human resources, benefits professionals and industry experts representing single employer plans or corporations in April.
The survey also found that 39 percent are beginning to develop tactics to deal with the implications of reform, while 31 percent said they are taking a “wait and see” approach. Among those organizations in a “wait and see” phase, 81 percent are awaiting the Supreme Court decision, 62 percent are awaiting more regulatory guidance and 52 percent are awaiting the outcome of the 2012 presidential and congressional elections.
Nearly half of all employers (47 percent) have conducted an analysis to determine how health care reform legislation will impact their health care plan costs. In fact, 70 percent expect the legislation will increase their costs in 2012.
“Employers are redesigning their health plans to remain in compliance and to curb anticipated costs,” says Julie Stich, the International Foundation’s director of research. “The research told us that increasing participants’ share of premium costs is the most common technique, followed by increasing in-network deductibles and out-of-pocket limits.”