Employers Expect Costs to Rise Under Obamacare
During the health care overhaul debate, President Obama promised repeatedly that his legislation would bring down health care costs. But according to a new survey of large employers by Towers Watson, many organizations with significant financial stakes on the line aren't betting on it. NCPA President John Goodman has the highlights:
- "The overwhelming majority (90%) of employers believe health care reform will increase their organization's health care benefit costs;"
- Nearly nine in ten firms (88%) plan to pass increased costs from the law on to their employees through higher premiums;
- Nearly three in four firms (74%) plan to pass the law's higher costs on to their employees by changing plan options, restricting eligibility, or increasing deductibles or co-pays;
- More than one in ten firms plan to pass on the law's higher costs by reducing employment (12%) or reducing employer contributions to retirement plans like 401(k)s (11%);
- Of those firms offering coverage, 43% are "likely to eliminate or reduce retiree medical programs" as a result of the law's enactment.
I noted another study looking at how many employers might drop coverage here and took a look at the Affordable Care Act's tax effects on businesses large and small here.