An employee benefit specialist must always remain on top of the current health care market to determine the best course of action for company policy, and recently there has been controversy surrounding the employee benefits market. However, this debate was stirred even more when the United States Supreme Court issued a new ruling.
On June 28th, the Supreme Court formally endorsed the Obama administration's health care reform plans. Larger companies might soon begin to phase out traditional programs that mark themselves as primary health insurance providers. As this trend picks up steam, it will trickle down to smaller and smaller companies until the standard becomes universal across the industry.
The Affordable Care Act is a large part of this endorsement – if it is approved, all adults in the United States will be guaranteed coverage starting in 2014. Instead of spending limited capital on health care, corporations can help employees pay for a national plan. A lump sum payment can give workers more freedom to choose the plan that is right for them. For example, a person with hereditary dental problems would need a plan that focuses on oral insurance.
"Many employers will restructure, but not to allow employees to take advantage of subsidies," said Alston & Bird Partner David R. Godofsky in an email. "From the employer's perspective, the goal is to reduce penalties while still leaving some employees out of their health insurance. That means employers will increasingly rely on part-time workers and refuse to allow them to work enough hours to become full time. Other employers will offshore some operations or concentrate hiring at the lateral rather than entry level."
If President Obama does not win re-election in November, the legislation might meet further delays due to administrative disapproval. However, human resource professionals need to monitor the situation very closely in the upcoming months.
