Employers will continue to shift benefits costs to their employees over the next few years. And health benefits are likely to continue to slowly erode as health care reform is implemented. Those were two of the findings in new research LIMRA recently shared with Colonial Life and Unum US business partners. The sessions gave employees in Chattanooga, Columbia, Portland and Worcester an advance look at preliminary results from several new surveys. LIMRA is a worldwide research, consulting and professional development organization and a long-time partner in our company’s research efforts.
According to the research, about half — 52 percent — of employers with 100 or more workers expect a negative effect from health care reform, yet 49 percent haven’t started any long-term planning for it.
The majority — 59 percent — have increased or plan to increase employee contributions toward the cost of medical coverage in the next three to five years. About the same number say they have required or will require employees to pay a greater share of the cost of some or all of their nonmedical welfare benefits in the next three to five years. Nearly as many — 54 percent — have increased or plan to increase deductibles and copayments in that time frame.
However, the majority of employers surveyed say health care reform will have little to no impact on their ability to offer medical or nonmedical benefits. The research defined nonmedical benefits as insurance coverage such as life, disability, accident, critical illness, dental and vision.
Smaller employers seemed a bit more optimistic about the effects of health care reform, with approximately half saying they expect little to no impact on their overall business, their employees, or their ability to offer nonmedical benefits in the next three to five years. But smaller employers are feeling the pain of rising health care costs: It was the number one issue facing those who offer benefits, cited by 60 percent of those surveyed. More than a third — 38 percent — of these employers say they’ll consider switching nonmedical benefits to voluntary coverage to help control rising benefits costs.
“The small business marketplace will continue to feel the brunt of health care cost increases, which, in turn, could further limit benefit offerings,” the report said.
Small employers may have a knowledge gap about benefits options, according to the survey. Of those who don’t offer benefits, 65 percent say it’s because the business can’t afford them, and 40 percent say they don’t have enough employees to qualify for a plan. In fact, employers can offer voluntary benefits such as those offered by Colonial Life and Unum at no direct cost to the business.
“Continually monitoring employers’ response to health care reform and anticipating their plans for what benefits and how much funding they will offer employees is critical for our entire organization,” said Roz Metzger, director of corporate research. “We have to carefully position our portfolio and access to choices considering the marketplace buzz about future sourcing of medical and nonmedical benefits.”
According to the research, about half — 52 percent — of employers with 100 or more workers expect a negative effect from health care reform, yet 49 percent haven’t started any long-term planning for it.
The majority — 59 percent — have increased or plan to increase employee contributions toward the cost of medical coverage in the next three to five years. About the same number say they have required or will require employees to pay a greater share of the cost of some or all of their nonmedical welfare benefits in the next three to five years. Nearly as many — 54 percent — have increased or plan to increase deductibles and copayments in that time frame.
However, the majority of employers surveyed say health care reform will have little to no impact on their ability to offer medical or nonmedical benefits. The research defined nonmedical benefits as insurance coverage such as life, disability, accident, critical illness, dental and vision.
Smaller employers seemed a bit more optimistic about the effects of health care reform, with approximately half saying they expect little to no impact on their overall business, their employees, or their ability to offer nonmedical benefits in the next three to five years. But smaller employers are feeling the pain of rising health care costs: It was the number one issue facing those who offer benefits, cited by 60 percent of those surveyed. More than a third — 38 percent — of these employers say they’ll consider switching nonmedical benefits to voluntary coverage to help control rising benefits costs.
“The small business marketplace will continue to feel the brunt of health care cost increases, which, in turn, could further limit benefit offerings,” the report said.
Small employers may have a knowledge gap about benefits options, according to the survey. Of those who don’t offer benefits, 65 percent say it’s because the business can’t afford them, and 40 percent say they don’t have enough employees to qualify for a plan. In fact, employers can offer voluntary benefits such as those offered by Colonial Life and Unum at no direct cost to the business.
“Continually monitoring employers’ response to health care reform and anticipating their plans for what benefits and how much funding they will offer employees is critical for our entire organization,” said Roz Metzger, director of corporate research. “We have to carefully position our portfolio and access to choices considering the marketplace buzz about future sourcing of medical and nonmedical benefits.”
