A recent survey of employers found that only one-third of respondents were maintaining a grandfathered health plan.
While more employers wished to take advantage of the perks grandfathered plans enjoy, which include exemption from certain administrative requirements and rules, some were unwilling to accept the price, according to the Society for Human Resource Management. Grandfathered plans cannot significantly raise co-insurance charges, co-payment charges or deductibles under health reforms. This is a problem for many employers who believe that costs are going to rise and they will need to pass some of that increase on to workers.
The Healthcare Reform Survey 2011-2012, conducted by an insurance brokerage, determined that about one-quarter of respondents had calculated the cost of HR compliance with the reform. Most indicated the cumulative cost increase would be at least 2 percent, with many reporting it would be as high as 5 percent.
Researchers noted that, as employee benefit costs increase, the new requirements are causing employers to consider their benefit offerings strategically to assess their impact on employee attraction, retention and satisfaction. Most remain committed to providing coverage for their workers, they told the news source.
