Friday, February 4, 2011

Report: some employers will pass health reform costs to employees

More than 40% of employers said that they are likely, and another 23% said that they are "highly" likely, to pass along any direct or indirect health reform-related cost increases to employees, according to research from the Employee Benefit Research Institute (EBRI) and the Society for Human Resource Management (SHRM). The 2010 EBRI/MGA Consumer Engagement in Health Care and the 2010 SHRM Organizations' Response to Health Care Reform surveys found that few are unlikely (10%) or "highly" unlikely (2%) to pass along cost increases related to the Patient Protection and Affordable Care Act (ACA), while 23% were unsure whether cost increases would be passed along to workers.

The studies noted that while the majority of employers are likely to pass along cost increases onto workers, only 30% of employers said that they were likely to pass along any cost decreases that were directly or indirectly related to the ACA. And, while 23% were "highly" likely to pass along these cost increases, only 10% were "highly" likely to pass along similar cost decreases.

Low knowledge of health reform. The Obama Administration may be frustrated with the level of current understanding of the reform law. Only 2% of adults with private insurance reported that they were "extremely" knowledgeable about the ACA, and only 7% reported that they were "very" knowledgeable. Most reported that they were "somewhat" knowledgeable (35%) or "not very" knowledgeable (37%). In addition, 18% said that they were "not at all" knowledgeable about the health reform law. Less than half of employers (45%) said that they were comfortable with the ACA, while 41% said they were not comfortable with the ACA, and 11% were strongly uncomfortable with the provisions of the ACA.

Future of employer-provided coverage. Despite their self-confessed lack of knowledge about reform, however, most Americans who currently have employer-provided coverage believe they will get to keep it.


Thirty-two percent of employees believe that their employer is likely to continue offering health benefits after 2014, and another 23% think that their employer is very likely to continue offering health benefits.


For a comprehensive analysis of the Patient Protection and Affordable Care Act, and additional information on health reform and other developments in employee benefits, just click here.

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