Employers slow to act on health reform

Back to TopCommentsE-mailPrintBookmark and Share

Even though employers expect the U.S. Supreme Court to strike down at least some of the 2010 health reform law later this month, few are actually doing any contingency planning.

Forty-five percent of employers surveyed by the International Foundation of Employee Benefit Plans said they are taking a “wait and see” approach to the fate of health care reform. Not only are they waiting for the Supreme Court to hand down its decision, but more than half taking this approach say they’re eyeing the outcome of the November elections, too.

Fewer than 30 percent of employers have had detailed discussions or drawn up scenario-based plans, according to the survey. And 26 percent of employers say they have had general discussions about how changes to the law could affect their health benefits plans.

“This is the calm before the storm, if you will,” said John Gause, president of Indianapolis-based Apex Benefits Group Inc.

Gause expects most employers to wait until after the court ruling and after the outcome of the November presidential election before solidifying any changes to their health benefits strategies. Most of the provisions of the Patient Protection & Affordable Care Act take effect in 2014.

“Employers are really going to say, ‘OK, it’s here or it’s not here,’ and they’re really going to look at that point,” Gause said of late-2012 and 2013. “And they’re going to look for direction from whoever their advisers are.”

On the whole, employers would like to see the Supreme Court toss the entire law on the scrapheap, according to the foundation’s survey. Fifty-eight percent prefer that outcome, compared with 27 percent that want the full law to stand and 14 percent that want some things to stay and some to go away.

However, employers generally do not expect to get their wish. Two-thirds expect that the Supreme Court will leave the law intact except for the “individual mandate”—a requirement in the law that all Americans except some young adults acquire health insurance.

If the entire law were to be struck down, legislators on Capitol Hill are preparing bills to reinstate some of its most popular provisions. Among the employers surveyed, not one of the provisions received majority support for reinstatement. The closest was the increased tax breaks for wellness programs, which garnered support from 33 percent of employers.

However, employers do think their employees would like to see some of the law’s provisions stand.  Most popular, in the employers’ estimation of their workers’ views, is the law’s requirement that employers cover their workers’ adult children up to age 26. Fifty-eight percent of employers think their workers want to see that rule remain.

And roughly one-third of all employers think their workers also favor the law’s elimination of all pre-existing condition exclusions and forbiddance of co-pays for preventive health care services.

The survey results, released June 5, were based on responses from 1,027 U.S. employers or multi-employer groups. The people responding were administrators of the companies’ health benefits plans.



Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help