How many companies are offering 'unaffordable' health care?
While the major changes won’t take place for several years, most firms have plenty of work to do in order to comply with the healthcare reform law.
Under a reform provision that goes into effect in 2014, employers will be hit with steep penalties if healthcare premiums paid by full-time workers exceed 9.5% of their total household income.
Based on info from 2009 healthcare cost survey, Mercer L.L.C. estimates that 38% of all companies currently have at least some workers who pay more than 9.5% of their total household income.
And, according to the Mercer study, the smaller the company, the higher the percentage of employees paying more than 9.5% of their household income for healthcare coverage:
- 38% of employers with between 10 and 499 workers have at least some of their workers paying more than 9.5% of their household income for health insurance, and
- 20% of employers with over 20,000 workers have at least some of their workers paying more than 9.5% of their household income for health insurance.
Another reason many companies will have to make some changes soon: Starting Jan. 1, 2011, imposing lifetime dollar limits on healthcare plans will be illegal.
Right now, 71% of companies with at least 500 employees currently impose a lifetime dollar limit in at least one of their preferred provider or point-of-service plans.
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Anaplan
Further Reading
If your company’s employees are like most, they’d score a big fat F on a financial literacy test. Every year, the Teachers ...
CFOs and benefits professionals can only do so much to influence employees to invest in a company 401(k) plan. So-called influencers are of...
Believe it or not, more than 80% of workers like their employers’ Paid Time Off (PTO) packages. But that doesn’t stop a surpris...
Environmental, social and governance (ESG) ratings of companies was never as popular as many in the media made it out to be. And the more t...
It’s that time of year again: Employer health insurance plans are up for renewal. For finance leaders, this period can feel like a lotter...
What should you do if you mistakenly pay out too much for one of your employer-provided benefits, such as your retirement plan? Plan spo...