Comlying with ever-changing healthcare reforms are one of the biggest challenges in HR and it is only getting more difficult. One of the biggest healthcare reforms in our history is moving full-steam ahead, are you ready for it?
After the U.S. Supreme Court constitutional ruling, the Health Care Reform (the Patient Protection and Affordable Care Act, or the ACA) is on its way, and fast. This is shaping up to be a bid deal for HR departments across the nation. This ruling came as a surprise to just about everyone. In fact, according to an ADP survey, only 10% of respondents expected this outcome -that the court would uphold the entire law. This has left a lot of employers scrambling.
The Readiness of Companies
The same ADP survey looked into the readiness of companies and their benefit decision makers based on the new ruling. Because the ruling was such a shock to most, the readiness levels are all over the map but the overall consensus is that they’re not ready. Employers and HR departments are in a flurry trying to get up to speed.
- 2 out of 5 large companies express high levels of confidence that they understand employer regulations under the new ruling.
- Only 1out of 5 small to midsized companies express high levels of confidence that they understand employer regulations under the new ruling.
The Cost to Employers
Employers of large and small companies alike are worried about the costs associated with this change in healthcare. With increasing deductibles and the elimination of retiree coverage, a lot of these costs will fall back on the employer.
- 82% of benefit decision makers in midsized companies believe that cost of providing employer-sponsored healthcare will become a barrier to achieving business outcomes.
- 83% of large companies feel the same way.
As healthcare costs soar, companies are being forced to find ways to off-set these costs. Here are some of the common tools to combat the costs used by midsized companies:
- 53% are increasing deductible/contributions
- 48% are increasing employee co-pays
- 46% are offering HSAs
- 45% are offering wellness programs
- 41% reduce the number of medical plan options available
- 30% are offering HRAs
The bottom line is taking a pretty big hit, and companies are trying a variety of different ways to save money. Not everyone is prepared though.
- 56% of midsized companies don’t have a plan for controlling the cost of providing health insurance.
- 26% of larger companies don’t either.
The struggle for employers and HR departments to reach full compliance is and will be a tough road. The processes and costs associated are expected to put a dent in bottom lines. Companies are doing a lot in the way to prepare for and offset these costs, but it doesn’t look like the majority are ready.