While the major changes won’t take place for several years, most firms have plenty of work to do in order to comply with the healthcare reform law.
Under a reform provision that goes into effect in 2014, employers will be hit with steep penalties if healthcare premiums paid by full-time workers exceed 9.5% of their total household income.
Based on info from 2009 healthcare cost survey, Mercer L.L.C. estimates that 38% of all companies currently have at least some workers who pay more than 9.5% of their total household income.
And, according to the Mercer study, the smaller the company, the higher the percentage of employees paying more than 9.5% of their household income for healthcare coverage:
- 38% of employers with between 10 and 499 workers have at least some of their workers paying more than 9.5% of their household income for health insurance, and
- 20% of employers with over 20,000 workers have at least some of their workers paying more than 9.5% of their household income for health insurance.
Another reason many companies will have to make some changes soon: Starting Jan. 1, 2011, imposing lifetime dollar limits on healthcare plans will be illegal.
Right now, 71% of companies with at least 500 employees currently impose a lifetime dollar limit in at least one of their preferred provider or point-of-service plans.