Employer health care costs will increase significantly in the near future

A recent survey showed that about 80-percent of employers have expressed their intentions to continue offering health benefits to employees in the near future.

Although the projected cost increase of the new healthcare reform bill shows a significant increase from years past, employers are still seeing the benefits of keeping or reducing coverage instead of dropping it completely.

The biggest change of the new bill will not go into effect until 2014. However, it is important for employers to have a strategy and get ready for the changes before they happen. Changes brought about by the new PPACA regulations will haev a major effect on how health services are delivered and how people obtain medical coverage. One of the most affected groups will be retirees.

Health care cost increase rates have slowed, but almost 60-percent of employers know they will be targeted by the 2018 healthcare reform excise tax if changes are not made to current benefits. In order to avoid the tax, more than 80-percent of employers plan to make changes and control costs.

According to the finding, about 60-percent of companies plan to change their programs or actions, and almost 40-percent plan to reduce subsidization for dependents and spouses of covered workers.

Nearly 30-percent, according to the survey, plan to implement spousal surcharges or waivers. Some employers will also place more costs on the shoulders of their employers.

Almost 15-percent of emploeyrs plan to increase employee premiums in the near future by at least five percentage points. However, slightly more than 40-percent plan to increase employee premiums by less than five percentage points.

Although the majority of employers understand and appreciate the value of affordable health care, they must take steps to control costs and increase workers’ accountability to live healthier.

More than 75-percent of employers, according to the finding, feel that health benefits are the key to employee value propositions over the next several years.

Although more than 30-percent of employers plan to evaluate their plans immediately, about 40-percent plan to have this done int he next few years, the report says.

To learn more about how the PPACA works or what steps to take next, discuss these issues with Gunn Mowery by calling 1-800-840-1243. You can e-mail us at info@gunnmowery.com. Like us on Facebook at Facebook.com/GunnMowery.

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Gunn-Mowery accepts no liability for the content of this blog post, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. If you are not the intended recipient, you are notified that disclosing, copying, distributing, or taking any action in reliance on the contents of this information is strictly prohibited. Gunn-Mowery provides attributd content for your continued awareness and convenience. Content that appears is not intended to substitute for binding insurance advice.

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