Employee Benefits News examines legal developments that impact the employee benefits and executive compensation employers provide, including federal and state legislation, rules from federal...
A majority of employers plan to continue providing health care coverage to their employees in 2014 when the 2010 federal health care law's “play or pay” provisions take effect, according to survey results released June 11 by the International Foundation of Employee Benefit Plans.
Nearly half (46.2 percent) of respondents said they will continue to provide health care coverage to employees in 2014, and 39.3 percent said they are “very likely” to continue offering coverage, according to results of the survey, presented in an IFEBP report, Health Care Reform: 2012 Employer Actions Update.
Only 1 percent of survey respondents indicated that they plan to discontinue coverage in 2014, IFEBP said.
IFEBP conducted the survey ahead of the Supreme Court's ruling on the constitutionality of the Patient Protection and Affordable Care Act (Pub. L. No. 111-148), which is expected to be rendered in late June.
“Organizations are at varied stages of assessing the impact of and developing approaches to reform,” IFEBP said.
Almost half of employers surveyed (47.2 percent) said they are focused on implementing the provisions of the health care law, while 39.1 percent indicated they are in the process of developing “tactics to deal with the implications of reform,” the survey said.
About one-third of employers (31.3 percent) said they are taking a “wait and see” approach with regard to implementation, the report said. This response was more common among smaller companies, it said.
Eighty percent of those taking a wait-and-see approach said they are waiting for the Supreme Court's decision on PPACA, 62.4 percent are waiting for further regulatory guidance, and 52.1 percent said they are waiting for the outcome of the presidential election, IFEBP said.
Regarding the cost of implementation, 38.7 percent of surveyed employers said that extending coverage for adult children to age 26 was the greatest “cost driver” among PPACA's provisions, IFEBP said. The second- and third-most-significant cost drivers among employers surveyed were no cost-sharing for preventative care (8.6 percent) and administrative costs (7.8 percent).
Almost 20 percent of respondents said none of the previously implemented provisions has increased their costs, the report said.
Employers also expressed significant concern about the cost of future PPACA provisions, with 19.6 percent citing the law's “Cadillac tax” on high-cost health insurance plans that will take effect in 2018 as the most likely to increase costs. Starting in 2018, PPACA will levy a 40 percent excise tax, dubbed the “Cadillac tax,” on health coverage costs exceeding $10,200 for single coverage and $27,500 for family coverage.
Other future provisions that employers anticipate will drive up costs include automatic enrollment of new hires (15.6 percent), providing affordable coverage to full-time equivalent employees (15.3 percent), and getting rid of pre-existing condition exclusions (14.6 percent), the report said.
The IFEBP report, free to members and $50 for nonmembers, is available at https://webportal.ifebp.org/Purchase/ProductDetail.aspx?Product_code=befb8361-a909-49b2-bcbe-55828e5eae35.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)