Obamacare has undoubtedly made significant changes in the way that American companies run and operate, but how profound are these changes? The truth is, most employers have no real idea. According to a survey, conducted by Willis, of more than 1,000 employers only 37% of respondents have gotten around to identifying the cost changes to their health plans in 2014 brought on by the Patient Protection and Affordable Care Act (PPACA). While this is an increase of 9% from last year, it is clear that measuring this cost is still proving difficult for a majority of employers.
BenefitsPro finds the biggest problem with not understanding the depth of these cost changes is that “employers will be left in the dark about how to best adjust benefit strategies.”
According to the Willis survey, organizations that have successfully measured these changes have found a few significant effects:
- 54% of the respondents found a cost increase of 0-5%
- 22% noted a 5-10% cost increase
In further response to PPACA, 14% of all respondents have eradicated health care for their part-time employees in 2014 and 8% intend to follow suit. These changes may appear extreme; however, BenefitsPro notes that most employers intend on continuing to provide their employees with benefits, despite the cost increase. Have you fully evaluated how Obamacare will impact your business and your benefits strategy?