By Jerry Geisel, Crain News Service
WASHINGTON (March 5, 2013) — Faced with a stiff financial healthcare reform law penalty and other financial costs, the overwhelming majority of employers intend to keep sponsoring healthcare plans, with many planning design changes, according to a new survey.
Released in late February, the Aon Hewitt survey of nearly 800 large and midsize employers found that just 6 percent of respondents intend to completely exit the healthcare system over the next three to five years.
The finding is not surprising, says Jim Winkler, chief innovation officer in Norwalk, Conn., with Lincolnshire, Ill.-based Aon Hewitt's U.S. health and benefits practice.
"The allure of exiting completely is strong until you look at the numbers. Between the (Patient Protection and Affordable Care Act) penalties for failing to offer coverage and the ensuing talent flight risk, most employers believe they need to continue to play a role in employee health," Mr. Winkler said in a statement.
Under the healthcare reform law, employers with at least 50 employees that do not offer coverage will—starting in 2014—be liable for a non-tax-deductible penalty of $2,000 for each full-time employee. In addition, for competitive reasons, many likely would have to boost employees' gross salaries to offset at least some of the cost those employees would face in buying coverage on their own.
Healthcare plan designs could change
Many employers, though, are considering changing plan design and the way coverage is offered.
For example, 37 percent of employers surveyed said that over the next three to five years, they expect to adopt what Aon Hewitt described as a "house money/house rules approach."
Under that approach, employers might reduce premiums for employees who take health risk questionnaires or biometric screenings, for example. Others might waive prescription drug copayments for employees who can demonstrate they are following their doctor's orders with regard to chronic conditions, Aon Hewitt said.
This article appeared in Business Insurance magazine, a Chicago-based sister publication of Tire Business.