Thursday, October 2, 2014

Obamacare Has Caused 71% of Companies to Increase Employee Contributions, Survey

This is from the University of South Carolina 2014 Darla Moore School of Business Human Resources Survey:
In order to assess how firms have responded to the Patient Protection and Affordable Care Act (PPACA), as part of the 2014 HR@Moore Survey of Chief HR Officers we asked CHROs how they have experienced different aspects of the health insurance and health care system and how they have changed their employment strategies. The results show that 78% of the respondents indicated that their health insurance costs have risen (by an average of 7.73%) and 37% reported that their labor costs have increased (by an average of 5.6%) as a direct consequence of the PPACA.  
Companies have sought to mitigate the increased cost by pushing cost and responsibility to employees, as 73% have moved or will move employees to Consumer Directed Health Plans and 71% have raised or will raise employee contributions toward health insurance. In addition, while not nearly as prevalent, 30% of firms have or will move their pre 65 retirees to ACA exchanges, have or will cut back coverage eligibility (27%), have or will more rigorously ensure part-time workers work fewer than 30 hours per week (24%), have or will increase the proportion of part-time workers (12%), and have or will limit the number of full-time hires (10%). ...  
The survey was sent to 560 CHROs including those from the Fortune 500 companies and members of a large professional society. Of those CHROs, 213 answered the questions regarding the ACA, representing a 38% response rate.