Employers must make a number of decisions concerning employee benefits and insurance now, determining whether they wish to provide coverage in the future and how they will do so.
Analysts are still attempting to estimate what effect the Patient Protection and Affordable Care Act (PPACA) will have on the nation, with some conflicting predictions. One study indicated that continuing with the status quo will be the most cost-effective choice for employers, and that most would likely do so as a result, Human Resource Executive Online (HREO) notes. Another estimated that almost one-third of employers will likely stop offering coverage, while a third indicated the market will remain stable.
In the past, researchers indicated that how companies sponsor health insurance coverage for their workers might change, but the fact that they do so will not. The actions employers are motivated to take may vary somewhat by state, as different healthcare exchanges may not be open to the same number of businesses.
Because they face a penalty for choosing not to offer coverage, some employers might be motivated to provide insurance. Researchers note that, even if the penalty is less costly than sponsoring coverage, employers will receive nothing in return for paying it. In contrast, helping employees stay covered may improve their health and build loyalty, among other advantages. The impact on employee morale may have a major impact on employers' decisions. Additionally, many have been providing coverage for long enough that inertia may discourage change.
Upcoming employer changes to healthcare
If the individual mandate and other measures are successful in reducing costs, employers may be less motivated to shift expenses to their workers and to choose high-deductible plans than they have been in recent years. Small and mid-size employers may be the ones with the most difficulty determining what course of action they wish to pursue with regards to insurance.
Analysts have offered conflicting estimates of the impact the PPACA will have on costs, making it even more challenging for businesses to determine what situation they face and decide how to deal with it. There are many factors in play, such as the fact that the individual mandate and other changes are likely to increase enrollment levels for many employer-sponsored health insurance plans.
