Friday, June 5, 2015

70% of Companies Say PPACA Has Been a Negative Experience, 40% Have Directly Cut Employment Due to Reform

In March the International Foundation of Employee Benefit Plans deployed its sixth survey in a series on how employer plans are being affected by the Patient Protection and Affordable Care Act (PPACA).  In surveying 598 human resources and benefits professionals and industry experts, three particular findings jumped out at me.  
  1. 12% of professionals said that PPACA had provided an overall positive impact on their business while 70% stated that PPACA resulted in an overall negative impact on their business.  About 18% were undecided. 
  2. When asked whether they viewed PPACA more positively or negatively now, as opposed to five years ago when it passed, respondents were three and a half times more likely to have a more negative view (36% vs. 10% with the remainder having no change in opinion). 
  3. Finally, respondents were asked about the actions they have taken specifically due to PPACA. The overwhelming list of actions was quite negative for employees and employment.  In sum, 40,1% of companies stated that they already have or plan to engage in at least one of the following practices in the next year: 
    • Reduction in hiring to get/stay under the 50-employee PPACA threshold for small employers
    • Adjusting hours so fewer employees qualify for full-time employee medical insurance requirement
    • Reduction in workers due to costs directly associated with PPACA
    • Froze or reduced pay raises/compensation
    • Reduced non-health-care-related benefit offerings