Nearly Half Of Employees Believe Cost Of Health Insurance Will Rise Due To Health Reform

Nearly half (46 percent) of employees believe that it is likely that the cost of health insurance will increase overall due to the Patient Protection and Affordable Care Act (ACA), according to recent research from The Prudential Insurance Company. The study, Health Care Reform: The Waiting Is Over, also found that 31 percent of employees think that it is likely that fewer employers will offer health insurance coverage due to the ACA.

Brokers and employers both anticipate consequences from the ACA, with brokers expecting a larger impact. Both groups agree that benefits funding will be most affected. Among their top concerns, brokers expect the number of employee benefits offered (80 percent) and benefit communications (78 percent) to be highly impacted, while employers noted benefits service and support (56 percent), as well as number of benefits offered (55 percent) as their top concerns.

Mid-size employers (500 to 9,999 employees) anticipate a greater impact on all aspects of employee benefits compared to small or large companies, according to the study. Prudential found that 68 percent think that the ACA will have a significant impact on employee benefits funding, and 61 percent said that it will have a significant impact on employee benefits communications. Large companies (10,000+ employees) were less likely to say that the number of employee benefits offered will be impacted.

Twenty-nine percent of employers said that they are at least “somewhat likely” to cease providing health care benefits to their employees. However, those companies who said they are leaders in ACA adoption are most likely to say they are not considering scaling back on benefits offerings.

For more information, visit http://www.prudential.com.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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