Benefits Insights, Summer 2015
In March, the International Foundation of Employee Benefit Plans (IFEBP) released the results of their sixth survey in a series examining how employer plans are being affected by the Affordable Care Act (ACA). The IFEBP surveys are in-depth studies of how single employer plans are responding to the implementation of the ACA. Highlights include indications that the ACA may have negative impacts on organizations and that employees still do not have a good understanding of the law.
Regarding the general focus and reaction to ACA, three in five respondents thought the law had a negative effect on their organizations. However, the majority of organizations remain committed to providing health insurance coverage. In addition, almost half of organizations describe their current position as compliant, but are developing tactics for dealing with reform.
Results also showed the biggest challenges regarding ACA for 2015 were undeniably from administrative issues and costs that are associated with reporting, disclosure and notification requirements. The respondents also do not expect the costs to go down, but rather anticipate costs to rise over the next few years.
Though cost drivers are a concern, ninety-four percent of those surveyed continue to provide health care coverage and nearly all plan to continue into 2016. The three main reasons given for maintaining coverage was to attract future talent, retain current employees and increase employee satisfaction.
In addition, when asked about employee overall understanding of ACA, respondents agreed that most employees had an average or poor understanding of employer-sponsored health care plans.
Respondents in 2015 included human resource professionals and industry experts whose organizations offer single employer plans.
Full survey details are available at: http://blog.ifebp.org/index.php/employers-reveal-acas-impact-in-sixth-annual-survey