The number of employers planning to offer health care benefits to active employees for the foreseeable future is increasing, despite projected cost increases.
According to a study by Towers Watson, when 440 midsize to large companies were asked about their health benefit expectations following the U.S. Supreme Court decision on Health Care Reform, 88% said they plan to continue offering an employer-sponsored plan. Though most regulations under the Patient Protection and Affordable Care Act (PPACA) do not go into effect until 2014, it is important that employers begin to prepare for these changes, as they will have a deep impact on the way health care is delivered and how individuals acquire health insurance.
- Among the majority of companies planning changes to their health benefits, 55% plan to pass along a greater share of costs to the worker by increasing their part of premiums and 67% are weighing changes to spousal and dependent coverage.
- Of the projected 2013 health care costs, the total increase to employees is not large, but neither is it insignificant, Towers Watson says, as it outpaces projected pay raises.
- Why do I offer my employees benefits today?
- How will I compensate my employees if I discontinue benefits and send them to the Exchange? In other words, am I prepared to offer higher compensation instead of benefits?
- How might my decision to continue or discontinue offering benefits impact recruiting and retaining top talent?
Making tough decisions regarding your employer-sponsored health plan requires a very strategic analysis. For help making this decision, contact us at (888) 277-0077.
To learn more about the Towers Watson study…
