Survey Finds High Commitment Level to Employer-Provided Health Care Benefits

Roughly two-thirds of companies say the Supreme Court’s decision has affected their overall health strategy. However, one-third are awaiting the upcoming elections or the opening of insurance exchanges before making significant changes to their health care strategy.

Nearly three-quarters (72%) of the respondents say they lack confidence that the exchanges will provide a viable alternative for active employees by 2015. While few companies are likely to direct active employees to exchanges, nearly six out of 10 of companies with a program are somewhat to very likely to discontinue retiree medical plan sponsorship for post-65 retirees, with 64% considering the same for pre-65 retirees, the survey states.

More than 8 in 10 (83%) of employers are planning to take steps to control their costs to avoid the tax. The $11,507 total cost represents an employer cost of $8,911 per employee and an employee cost of $2,596 per employee. While the increase in employee cost sharing is modest, it is meaningful to employees, as it outpaces average merit increases, the survey states.

The actions and programs that companies are planning or considering include changing plan options (63%), significantly reducing subsidization of coverage for spouses and dependents (38%) and using spousal waivers or surcharges (29%).

Additionally, some employers will pass along a greater percentage of costs to employees. Thirteen percent plan to increase their employees’ share of health care premiums in 2013 by 5 percentage points or more, while 42% plan to increase employees’ share by 1 to 5 percentage points.