New Survey Confirms Most Employers Plan to Keep Offering Health Benefits

The vast majority of employers intend to continue providing health coverage once many of the more controversial Affordable Care Act (ACA) provisions take effect in 2014, according to a recent post-election survey (pdf) conducted by the International Foundation of Employee Benefit Plans (IFEBP). The organization administered the survey of 593 benefit plan administrators, trustees and organizational representatives on December 3 and 4. Notable findings include the following:

  • 84% of responding employers stated that they definitely or very likely will continue to provide employer-sponsored health coverage to their full-time employees in 2014, a 7% increase from that reported pre-election.
  • The top three reasons for continuing to provide coverage include the desire to maintain/increase employee satisfaction; to retain current employees; and, for unionized workplaces, the fact that health coverage is included in the collective bargaining agreement.
  • 19.4% of employers responded that they were “extremely” and 40.3% said they were “very” prepared for the changes the health reform law will bring. The main reason for holding off on making additional workplace changes to prepare for the various ACA requirements is that employers are waiting for additional regulatory guidance on how to implement the law’s various provisions.
  • The ACA provisions about which employers are most concerned include those requiring covered employers to provide affordable coverage to all employees working an average of 30 hours or more per week, and the nondeductible excise tax on high-cost health plans that will take effect in 2018.
  • Employers are generally not changing their hiring plans as a result of the ACA. 48% responded that they had no plans to add or reduce their workforce, and only 5% claimed that they planned to reduce their workforce to avoid the “pay or play” employer mandate, which will apply to employers with 50 or more full-time employees.
  • More than a majority (52%) of responding employers claimed that they intend to focus on wellness programs.

More information on the survey can be found here.

Photo credit: MBPHOTO, Inc.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.