{"id":160,"date":"2012-06-20T16:11:33","date_gmt":"2012-06-20T21:11:33","guid":{"rendered":"http:\/\/sanfordrose.wpengine.com\/somerset\/employers-still-plan-to-provide-health-coverage-in-2014-featuring-tim-tolan-senior-partner-sanford-rose-associates\/"},"modified":"2012-07-10T22:23:32","modified_gmt":"2012-07-10T22:23:32","slug":"employers-still-plan-to-provide-health-coverage-in-2014-featuring-tim-tolan-senior-partner-sanford-rose-associates","status":"publish","type":"post","link":"https:\/\/sanfordrose.com\/kempfgroup\/employers-still-plan-to-provide-health-coverage-in-2014-featuring-tim-tolan-senior-partner-sanford-rose-associates\/","title":{"rendered":"Employers Still Plan to Provide Health Coverage in 2014 – Featuring Tim Tolan, Senior Partner Sanford Rose Associates\u00ae"},"content":{"rendered":"

by\u00a0Kathryn Elizabeth Tuggle<\/a>\u00a0|\u00a0Published June 15, 2012 |\u00a0FOXBusiness<\/p>\n

The Supreme Court is expected to issue its ruling on the constitutionality of President Obama\u2019s health-care overhaul by the end of the month–forcing many corporations to stay in a holding pattern as they wait the fate of their health plans.<\/p>\n

However, according to a new study by the\u00a0International Foundation of Employee Benefit Plans<\/em>, the majority of employers do not plan to change their health-care plans by 2014–even though they are bracing for added costs. According to the 2012 Employer Action Survey,\u00a0 86.4% of employers do not anticipate making any changes in their employee\u2019s health insurance offerings.<\/p>\n

\u201cEven though we\u2019re expecting the big health-care decision this June, most companies are in wait-and-see mode, and they aren\u2019t going to spend a lot of time making adjustments for 2014,\u201d says John Herath, director of human resources of Orion ICS, a human resources outplacement company.\u00a0 \u201cMost likely, even once the regulation is passed, it\u2019s going to have a few problems, and employers aren\u2019t going to be forced to adhere to the new rules overnight.\u201d<\/p>\n

Many employers expect to pay more in order to adhere to new health care provisions. For example, the Patient Protection and Affordable Care Act requires that employers offer insurance to adult children up to age 26, and 38.7% \u00a0of employers say that alone is going to increase costs.<\/p>\n

\u201cMost plans right now cover children up to age 21, and 26 wasn\u2019t even on the horizon. So now companies have to cover all children up to age 26 regardless of whether or not they are a full time student,\u201d says Herath. \u201cIt\u2019s going to keep more people on each family\u2019s plan for a longer period of time.\u201d<\/p>\n

The survey also found that 15.3% of employers cite the new national standard of a 30-hour work week being defined as full time as another financial burden. \u201cPreviously, individual employers were allowed to decide what their definition of \u2018full time\u2019 was. Some companies said it was 35 hours per week, other said it was 40. But now with the regulation they\u2019ve drawn a hard line and are saying that 30 hours per week is it. Basically, they\u2019ve made a national standard for what full time really means,\u201d says Herath.<\/p>\n

Timothy Tolan, senior partner at human resources consultancy Sanford Rose Associates<\/a>, says even if the reform is ruled unconstitutional, he doesn\u2019t see employers eliminating benefits.<\/p>\n

\u201cThe last thing an employer will do is reduce benefits because when you do that you lose your current employees as well as your ability to attract and retain people,\u201d he says. \u201cThink about trying to recruit talent and then you get down to that final interview and you say, \u2018Oh, by the way, you have to pay your own way with health care.\u2019 It\u2019s not going to happen.\u201d<\/p>\n

With or without the new health care law, insurance rates are expected to rise, and that cost will be passed onto employees. According to the survey, 23.1% of companies plan to increase participants\u2019 shares of premium costs as a \u201ccost containment measure.\u201d A further 15.9% of employees also plan to increase the cost for employees\u2019 dependents coverage, including spouses and children.<\/p>\n

\u201cThere will always be a portion that the employee has to pay, and I see that going up,\u201d Tolan says.<\/p>\n

However, if the reform is upheld, employers will be limited to the amount of cost they can push onto employees. \u201cThe new regulations say that an employee\u2019s contribution to their health-care plan can\u2019t be more than 8% of their wages,\u201d says Herath. \u201cThat\u2019s going to involve a lot of calculation as to how much each employee makes and how much each employee is spending, but it\u2019s definitely going to help individuals manage their costs.\u201d<\/p>\n

In order to minimize the blow of having to pay more in health costs, Tolan expects employers to offer additional benefits like better 401(k) options, office perks like massages and free coffee and wellness programs.<\/p>\n

\u201cIt\u2019s to the company\u2019s advantage\u2014keeping obesity rates down can save an employer hundreds of thousands of dollars in the long run,\u201d he says. \u201cWe\u2019re going to see more companies getting a lot more insistent on better health from everyone they employ, from the CEOs to the interns.\u201d
\nRead more:\u00a0http:\/\/www.foxbusiness.com\/personal-finance\/2012\/06\/15\/employers-still-plan-to-provide-health-coverage-in-2014\/#ixzz1yN0EjbvF<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

by\u00a0Kathryn Elizabeth Tuggle\u00a0|\u00a0Published June 15, 2012 |\u00a0FOXBusiness The Supreme Court is expected to issue its ruling on the constitutionality of President Obama\u2019s health-care overhaul by the end of the month–forcing many corporations to stay in a holding pattern as they wait the fate of their health plans. However, according to a new study by the\u00a0International Foundation of Employee Benefit Plans, the majority of employers do not plan to change their health-care plans by 2014–even though they are bracing for added costs. According to the 2012 Employer Action Survey,\u00a0 86.4% of employers do not anticipate making any changes in their employee\u2019s health insurance offerings. \u201cEven though we\u2019re expecting the big health-care decision this June, most companies are in wait-and-see mode, and they aren\u2019t going to spend a lot of time making adjustments for 2014,\u201d says John Herath, director of human resources of Orion ICS, a human resources outplacement company.\u00a0 \u201cMost likely, even once the regulation is passed, it\u2019s going to have a few problems, and employers aren\u2019t going to be forced to adhere to the new rules overnight.\u201d Many employers expect to pay more in order to adhere to new health care provisions. For example, the Patient Protection and Affordable Care Act requires that employers offer insurance to adult children up to age 26, and 38.7% \u00a0of employers say that alone is going to increase costs. \u201cMost plans right now cover children up to age 21, and 26 wasn\u2019t even on the horizon. So now companies have to cover all children up to age 26 regardless of whether or not they are a full time student,\u201d says Herath. \u201cIt\u2019s going to keep more people on each family\u2019s plan for a longer period of time.\u201d The survey also found that 15.3% of employers cite the new national standard of a 30-hour work week being defined as full time as another financial burden. \u201cPreviously, individual employers were allowed to decide what their definition of \u2018full time\u2019 was. Some companies said it was 35 hours per week, other said it was 40. But now with the regulation they\u2019ve drawn a hard line and are saying that 30 hours per week is it. Basically, they\u2019ve made a national standard for what full time really means,\u201d says Herath. Timothy Tolan, senior partner at human resources consultancy Sanford Rose Associates, says even if the reform is ruled unconstitutional, he doesn\u2019t see employers eliminating benefits. \u201cThe last thing an employer will do is reduce benefits because when you do that you lose your current employees as well as your ability to attract and retain people,\u201d he says. \u201cThink about trying to recruit talent and then you get down to that final interview and you say, \u2018Oh, by the way, you have to pay your own way with health care.\u2019 It\u2019s not going to happen.\u201d With or without the new health care law, insurance rates are expected to rise, and that cost will be passed onto employees. According to the survey, 23.1% of companies plan to increase participants\u2019 shares of premium costs as a \u201ccost containment measure.\u201d A further 15.9% of employees also plan to increase the cost for employees\u2019 dependents coverage, including spouses and children. \u201cThere will always be a portion that the employee has to pay, and I see that going up,\u201d Tolan says. However, if the reform is upheld, employers will be limited to the amount of cost they can push onto employees. \u201cThe new regulations say that an employee\u2019s contribution to their health-care plan can\u2019t be more than 8% of their wages,\u201d says Herath. \u201cThat\u2019s going to involve a lot of calculation as to how much each employee makes and how much each employee is spending, but it\u2019s definitely going to help individuals manage their costs.\u201d In order to minimize the blow of having to pay more in health costs, Tolan expects employers to offer additional benefits like better 401(k) options, office perks like massages and free coffee and wellness programs. \u201cIt\u2019s to the company\u2019s advantage\u2014keeping obesity rates down can save an employer hundreds of thousands of dollars in the long run,\u201d he says. \u201cWe\u2019re going to see more companies getting a lot more insistent on better health from everyone they employ, from the CEOs to the interns.\u201d Read more:\u00a0http:\/\/www.foxbusiness.com\/personal-finance\/2012\/06\/15\/employers-still-plan-to-provide-health-coverage-in-2014\/#ixzz1yN0EjbvF<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[21,22,23,4,7,24,25],"class_list":["post-160","post","type-post","status-publish","format-standard","hentry","category-sra-news","tag-2014-health-coverage","tag-employee-health-insurance","tag-employer-health-coverage","tag-human-resource-tips","tag-sanford-rose-associates-best-practices","tag-tim-tolan","tag-wellness-programs"],"yoast_head":"\nEmployers Still Plan to Provide Health Coverage in 2014 - 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