How Employers Plan to Respond to the New Health Reform Law

  • More than four in five (84%) are likely to make changes — e.g., raise premiums, deductibles, and co-payments — to offset increased costs thanks to the law;
  • More than five in six (86%) of employer respondents are likely to re-evaluate their overall benefits strategy;
  • More than half (51%) of employers did not expect to maintain “grandfathered” health status — meaning employees will forfeit their current health coverage, and pay higher premiums as a result of federal mandates introduced on their new coverage;
  • Nearly two in three employers (65%) expect to be affected by the “Cadillac” tax on employer health plans;
  • Almost half (45%) of companies “indicated they were likely to change subsidies for employee medical coverage” as a result of the law — quite possibly “dumping” their employees on to government-run Exchanges; and
  • Exactly one-half (50%) are considering “significantly changing or eliminating company subsidies for dependent medical coverage.”

Full PwC report here. Thanks to Chris Jacobs for the pointer.

Comments (5)

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  1. Brian Williams. says:

    Those are staggering numbers. At this rate, everyone is going to need a waiver from Obamacare.

  2. Devon Herrick says:

    I’ve seen various reports from HR consultants explaining employers would be much better off dropping coverage, paying the fine and boosting workers’ pay slightly.

  3. Madeline says:

    This is depressing.

  4. Jeff says:

    Brian, I think all the waivers are temporary.

  5. hargen says:

    The underlying plan is to gut the private system and then, voila, we have a single payer government system since private industry dumped the American people on their head.