And they say brokers are bad when it comes to procrastination. Apparently, their clients aren’t much better.
For as cost-conscious as most of them are, a new study reveals more than half of them haven’t even worked out the math when it comes to how much health reform is going to cost them.
But among those who have started doing the math, the survey, just released from Willis Human Capital Practice, shows two-thirds of them have already seen compliance-based cost increases stemming from the reform law. And this makes for a strange dichotomy, since the experts at Willis insist employers are relying on some misguided perceptions as the plan for life after reform, which is why, they say, so many employers haven’t done anything yet.
In fact, the study shows that only 20 percent of employers expect to adjust their benefits plans as a result of increased compliance costs. But perhaps most damning—or embarrassing—is this revelation: “Consequently, the vast majority of employers still hope to comply with health care reform and expand their health coverage as necessary—without reducing other benefits,” lifted straight from the Willis press release.
“Employers are still coming to tems with the impact of health care reform, and many employers still seem to function in a ‘shock mode.’ While few employers consciously manage their group medical benefits as a component of their total rewards perspective, survey responses indicate the very beginning of an employer trend in this direction,” said Jay Kirschbaum, practice leader, national legal and research group, Willis Human Capital Practice.
The full survey results can be found here.