Though some business owners say the Patient Protection and Affordable Care Act may affect their employee benefit plan administration, the suggestion that employers will stop offering coverage appears to be off-base.
According to a new survey conducted by the Midwest Business Group on Health, in partnership with healthcare market research firm The Benfield Group, nearly one-third of employers say they intend to reduce their employee benefits offered in 2014 to prepare for the excise tax on so-called "Cadillac" plans. An additional 41 percent said they will wait until 2017. The 40 percent excise tax is projected to go into effect in 2018.
While these changes may take place, employers appear to be bullish about offering health plans going forward. The survey showed that 31 percent of employers plan to offer consumer-directed health plans in 2017 and 2018, up from the 57 percent that do so now.
Scott Thompson, president of The Benfield Group's healthcare practice division, said employee benefits aren't going away because companies want to incentivize workers to perform at their best.
"Employers still believe that health benefits are vital to attract talented employees and maintain a productive workforce," said Thompson. "This research found that most employers, especially those with more than 200 employees, will not drop employee benefit coverage in the foreseeable future."
He added that it looks as though employers will continue to be healthcare purchasers by amending their plans through various options, such as implementing more CDHPs or making premium contributions contingent upon the number of dependents an employee has.
There were also indications that employers plan on making certain benefits voluntary, such as those that relate to vision or dental coverage. The majority – 55 percent – will do this in 2017 or 2018.
