IBJNews

Employers want cake, and to eat it, too

Back to TopCommentsE-mailPrintBookmark and Share

Employers are still trying to get their arms around what the new health insurance law will mean for them. But on the eve of the law’s passage last month, a survey by Indianapolis-based United Benefit Advisors LLC showed employers as a group had no hope the law would reduce their costs—but also no coherent plan for reforming the current system.

Of the 1,500 U.S. employers surveyed, 52 percent expect the new law to raise health care costs faster than present trends. Another 20 percent think it will keep costs rising as fast as they have been.

Only 28 percent think the new law will slow the growth or reduce the cost of health care.

Employers seem to want to have things both ways, according to United Benefit Advisors' summary of the survey results. Although employers think the new law will make the cost situation worse, only 11 percent of employers supported the new law’s most obvious cost-saving measure: the taxation of expensive, “Cadillac” health insurance plans.

Another example of employers’ conflicting desires is that they want requirements for health insurers to take all comers, but no requirements for individuals or employers to buy health coverage.

A whopping 71 percent approved of the law’s ban against health insurers declining coverage to people with pre-existing conditions. Yet only 27 percent of employers supported the new law’s mandate on employers with 50 or more workers to provide insurance coverage. Even fewer, 21 percent, supported the bill’s tax penalties on individuals who don’t buy health insurance.

Of course, if employers’ demands had been enshrined in law, health insurers have warned they would be flooded by people with illnesses—knowing they cannot be turned away—and shunned by people in good health, who know they can wait to buy insurance until they’re actually sick. The result would be skyrocketing insurance costs.

Health insurers fear a similar result with the new health insurance law because the taxes that will be levied on people who don’t buy health coverage are, in their view, too small to be very effective.

"Employers want to be assured that their employees and their families have protection against the financial burdens caused as a result of having no or inadequate health care, pre-existing conditions and loss of coverage," wrote the United Benefit Advisors staff in a summary of the survey's findings. "Yet, at the same time, they do not support individual mandates for coverage with or without tax incentives/subsidies."
 
The survey was conducted online in February and early March. President Obama signed health insurance reform into law on March 23 and some amendments a few days later.

United Benefit Advisors is a network of benefits brokers and consultants around the country. It has more than 140 member firms, who represent nearly 40,000 employers in North America and the United Kingdom.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am a Lyft driver who is a licensed CDL professional driver. ALL Lyft drivers take pride in providing quality service to the Indianapolis and surrounding areas, and we take the safety of our passengers and the public seriously.(passengers are required to put seat belts on when they get in our cars) We do go through background checks, driving records are checked as are the personal cars we drive, (these are OUR private cars we use) Unlike taxi cabs and their drivers Lyft (and yes Uber) provide passengers with a clean car inside and out, a friendly and courteous driver, and who is dressed appropriately and is groomed appropriately. I go so far as to offer mints, candy and/or small bottle of water to the my customers. It's a mutual respect between driver and passenger. With Best Regards

  2. to be the big fish in the little pond of IRL midwest racin' when yer up against Racin' Gardner

  3. In the first sentance "As a resident of one of these new Carmel Apartments the issue the local governments need to discuss are build quality & price." need a way to edit

  4. As a resident of one of these new Carmel Apartments the issue the local governments need to discuss is build quality & price. First none of these places is worth $1100 for a one bedroom. Downtown Carmel or Keystone at the Crossing in Indy. It doesn't matter. All require you to get in your car to get just about anywhere you need to go. I'm in one of the Carmel apartments now where after just 2.5 short years one of the kitchen cabinet doors is crooked and lawn and property maintenance seems to be lacking my old Indianapolis apartment which cost $300 less. This is one of the new star apartments. As they keep building throughout the area "deals" will start popping up creating shoppers. If your property is falling apart after year 3 what will it look like after year 5 or 10??? Why would one stay here if they could move to a new Broad Ripple in 2 to 3 years or another part of the Far Northside?? The complexes aren't going to let the "poor" move in without local permission so that's not that problem, but it the occupancy rate drops suddenly because the "Young" people moved back to Indy then look out.

  5. Why are you so concerned about Ace hardware? I don't understand why anyone goes there! Every time ive gone in the past, they don't have what I need and I end up going to the big box stores. I understand the service aspect and that they try to be helpful but if they are going to survive I think they might need to carry more specialty parts.

ADVERTISEMENT