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.