Most Employers to Continue Health Care Benefits

Preliminary results from the “2013 Employer-Sponsored Health Care: ACA’s Impact Survey” revealed a growing confidence in employer-sponsored health care, with 69% of employers stating that they will definitely continue to provide employer-sponsored health care when health exchanges become available in 2014. This represents a 23-point increase from 2012, when 46% reported being certain that they would continue employer-sponsored health care. Another 25% stated they are very likely to continue employer-sponsored health care.

Estimates of cost increases directly associated with the Affordable Care Act (ACA) have increased from 2012 to 2013. Employers with 50 or fewer employees are reporting the largest anticipated cost increase. Conversely, larger employers are the least likely to see significant cost increases.

With implementation only months away, the vast majority of employers (90%) have moved beyond a “wait and see” mode and more than half are developing tactics to deal with the implications of reform. Organizations maintaining a “wait-and-see” mode decreased from 31% in 2012 to less than 10% in 2013.

Smaller employers are making more employment-based decisions with hiring, firing and reallocating hours than larger employers. Smaller employers are also more likely to drop coverage due to ACA.

Since the first survey in 2010, employers have most commonly said keeping compliant was their top focus. In 2013, for the first time, employers are more likely to say their top focus is developing tactics to deal with implications of the law.

The “2013 Employer-Sponsored Health Care: ACA’s Impact Survey” results are based on survey responses submitted by more than 950 employee benefit professionals and practitioners through March 26, 2013. Final survey results will be released in May 2013 and will be available at www.ifebp.org/Resources/Research.