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Reading: How Employers Plan to Respond to the New Health Reform Law
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Health Works Collective > Policy & Law > Health Reform > How Employers Plan to Respond to the New Health Reform Law
BusinessHealth Reform

How Employers Plan to Respond to the New Health Reform Law

JohnCGoodman
Last updated: 2011/05/24 at 3:30 PM
JohnCGoodman
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  • More than four in five (84%) are likely to make changes — e.g., raise premiums, deductibles, and co-payments — to offset increased costs thanks to the law;
  • More than five in six (86%) of employer respondents are likely to re-evaluate their overall benefits strategy;
  • More than half (51%) of employers did not expect to maintain “grandfathered” health status — meaning employees will forfeit their current health coverage, and pay higher premiums as a result of federal mandates introduced on their new coverage;
  • Nearly
    • More than four in five (84%) are likely to make changes — e.g., raise premiums, deductibles, and co-payments — to offset increased costs thanks to the law;
    • More than five in six (86%) of employer respondents are likely to re-evaluate their overall benefits strategy;
    • More than half (51%) of employers did not expect to maintain “grandfathered” health status — meaning employees will forfeit their current health coverage, and pay higher premiums as a result of federal mandates introduced on their new coverage;
    • Nearly two in three employers (65%) expect to be affected by the “Cadillac” tax on employer health plans;
    • Almost half (45%) of companies “indicated they were likely to change subsidies for employee medical coverage” as a result of the law — quite possibly “dumping” their employees on to government-run Exchanges; and
    • Exactly one-half (50%) are considering “significantly changing or eliminating company subsidies for dependent medical coverage.”

    Full PwC report here. Thanks to Chris Jacobs for the pointer.

       

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JohnCGoodman May 24, 2011
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