Home > News > 87% of Employers to Reduce Benefits if Health Care Reform Increases Costs

87% of Employers to Reduce Benefits if Health Care Reform Increases Costs

September 17, 2009 Leave a comment Go to comments

Nothing I have to say here.

Employers say they will not absorb any additional costs that result from reform and plan to take actions to avoid doing so, including reducing benefits, raising prices for customers and/or reducing head count.

The survey of 443 HR and benefit executives found that 87% of those surveyed would reduce benefits, 38% were likely to pass the increase off to consumers, 30% would absorb the costs by cutting staff and 27% would reduce salaries and compensation as a counter measure. Somehow we are supposed to believe the 11% of executives that claim their companies will absorb the loss.

What about the possibility of accepting the proposed penalty for eliminating health care coverage altogether and forcing employees onto the government plan?

Among the full survey group, employers expect they would respond to a pay-or-play mandate in the following ways:

  • 37% of employers would provide company-sponsored health coverage that substantially exceeds the standard.
  • 29% of employers would discontinue company-sponsored health coverage and pay the assessment if the per-employee costs of payments to the federal government were substantially lower than their current costs.
  • 26% of employers would provide company-sponsored health coverage at the level of the minimum standard required.

87% of Employers to Reduce Benefits if Health Care Reform Increases Costs | NewsBusters.org

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