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More Employers Expect Higher Costs Under Reform Law

06/17/13

  10:32:44 am, by MedBen5   , 189 words,  
Categories: News, Health Plan Management

More Employers Expect Higher Costs Under Reform Law

Employers aren’t overly optomistic that the Affordable Care Act will help their bottom line, finds a new survey by benefits consultant Mercer.

According to The Wall Street Journal, just 9% of the 881companies surveyed feel the health care reform law will add less than 1% to their costs next year. That represents a significant drop from 2012, when 20% felt they would see little impact come 2014 – which in itself marked a decline from 25% in 2011.

Conversely, an increasing number of employers expect costs to go up by 5% or more – 19%, compared to 15% in 2011.

About a third of the companies Mercer surveyed currently don’t provide coverage. But with the upcoming ACA rule requiring all employees working 30 hours or more a week to be eligible for insurance, almost 60% of those who don’t say they intend to, and 30% expect to add a new, lower-cost plan.

Nearly 80% of employers also expressed concerns about communicating the law to their employees, while 70% said the requirements to educate their employees on plan changes and to help them make informed decisions are a “significant concern.”

Mercer surveyed 281 companies with fewer than 500 employees, 418 with 500 to 5,000 employees and 182 who have more than 5,000 employees.

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