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They're not happy, but employers plan to hang in on employee health care plans

Tim Gould
by Tim Gould
June 2, 2010
1 minute read
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Not surprising: A recent poll says large employers have serious doubts that healthcare reform will be effective in controlling costs. Somewhat surprising: The overwhelming majority of those companies won’t be dropping their employee health coverage.
The passage of the healthcare reform package brought a chorus of  large employers saying the legislation would cause companies to abandon their employee health plans. That sentiment seems to have softened, at least among the respondents to a recent Towers Watson survey — 74% said they expected to continue offering the key benefit.
They’re not exactly happy about future prospects for the U.S. healthcare system, however:

  • 94% believe reform will raise plan costs
  • 61% believe reform will have a “minimal effect” on encouraging healthier employee lifestyles, and
  • 73% think the quality of care will either be affected negatively or not at all.

How will employers cover additional costs? They poll said they’d:

  • Pass on increases to employees (88%)
  • Reduce health benefits and programs (74% )
  • Absorb costs in the business (33%), and
  • Pass on increases to customers (20%).

For a look at the consulting firm’s take on the overall effect of healthcare reform on employers, go here.

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