In a recent article by Gillian Roberts for Employee Benefit News, “More than half of employers have not calculated their costs under the Patient Protection and Affordable Care Act, but of those that have, 61% say the law will increase their expenses.”
Furthermore, a study by Willis Human Capital Practice found that 60% of employers would like to avoid increases in spending on their group health plans, and 34% of them say they will shift costs to employees. Though some employers do not view or manage their benefits as part of their total rewards or compensation perspective, studies show that there is a significant employer trend headed in this direction.
Do you think employers are still coming to terms with the impact of health care reform and functioning in ‘shock mode’ with faulty perceptions of cost?
The danger of denial
Often times the organizations we talk to are indeed in shock mode, or perhaps even a sense of denial, about the decisions they face and the timeline they have to do so. Employers have a unique opportunity to get in front of the curve. They possess a unique opportunity to be the leader in their industry when it comes to planning and execution of their benefits strategy post-2014 implementation. After all, there is much to measure and consider.
We were not surprised by statistics, however, that show most employers are intending to “play” under the pay-or-play mandate because they continue to recognize the value of providing medical benefits.
We urge client and friends to seek professional consultation in regards to health care reform so that you can make the right decisions for your staff and your business.
For assistance in planning for health care reform:
-Are you an AFG client? Contact your dedicated Account Manager or Dean Austin at 248.594.5550.
-New to AFG? Contact Lauren Simonetti or Dean Austin at 248.594.5550.
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