Willis: Employers vague on healthcare reform costs

Although health care reform is a top concern for US employers, most organisations have not measured its cost impact, according to a survey released by the Willis Human Capital Practice.

Only 37 percent of respondents have identified the cost impact of healthcare reform on their health plans in 2014. While this is an increase over the 28 percent of respondents that had identified these costs in last year’s survey, “it demonstrates that for many organisations, determining an accurate assessment of these figures is still a challenge,” the survey said.

Of the respondents that identified a cost impact of healthcare reform, over half (54 percent) noted a cost increase between 0 and 5 percent, while 22 percent estimated their increase in the 5–10 percent range. Meanwhile, group medical costs for employers continue to rise. Nearly three-quarters indicated their health plan costs increased in 2014. Understanding how much of that increase is due to changes in compliance versus other factors, such as medical trend, is crucial to their strategic planning, the report stated.

Despite some highly visible reports in the media to the contrary, employers generally do not plan to eliminate group medical benefits as part of their compensation practices, the survey indicated.