With full implementation of Obamacare coming fast, CFOs are faced with making some serious decisions about funding their companies’ employee health care benefits.
A recent survey tried to assess what health care reform’s impact on employer-sponsored health care will be.
The International Foundation of Employee Benefit Plans (IFEBP) has been surveying HR reps, general and financial managers, and other company officials on the Affordable Care Act (ACA) since 2010. IFEBP released its fourth survey in March, having received 966 responses.
Perhaps the most interesting stat to come out of it: 94% of employers said they “definitely” or “very likely” will continue providing coverage after the ACA kicks in.
Here’s a quick overview of what employers had to say about the law and their plans:
Continuing Coverage
- 69% said they will “definitely” continue providing coverage to employees.
- 25% said they would “very likely” continue providing coverage.
- 27% said they intend to keep their grandfathered plan (less than half of that 27% plan to keep their grandfathered plan for more than two years).
- Less than 1% said they will not provide employer-sponsored coverage in 2014.
- 18% said they had increased or plan to increase participants’ share of plan premiums.
- 16% said they had adjusted or plan to adjust hours so fewer employees qualify as full-time — and health benefits eligible.
Knowledge of ACA
- 69% said they thought they had a good — not excellent — understanding of the ACA.
- 29.1% said they thought they had a “firm handle” on the law and its implications.
- 64% said they had analyzed the ACA’s cost impact (the majority of which estimated it’ll result in a 3% to 4% increase in costs on their firms).
Meeting the requirements
- 81% said their plans already meet the ACA’s proposed minimum coverage requirements.
- 74% said their plans already meet the proposed affordability requirements.
- 91% said they already offer medical benefits to employees working more than 30 hours a week.
- 51.9% of companies that offer medical benefits said they had begun developing tactics to deal with the implications of reform.
- 17% said they had already begun redesigning their plans to avoid the 2018 excise (“Cadillac”) tax.
Communication with employees
- 72.5% of companies that offer medical benefits said they communicate with employees using annual enrollment materials.
- 41% of companies that offer medical benefits said they’ve communicated updates on the ACA to their employees through email.
- 30% of companies that offer medical benefits said they communicate updates to their employees through their company website.
