With healthcare reform looming, cost-savings is a major priority
Why are employers so concerned about healthcare reform? There are many reasons, of course, but the primary reason is cost. Employee healthcare benefits already represent a significant budget expense for most employers, accounting for an ever-larger portion of total employee compensation. According to a recent survey by Mercer, employers have upped their estimates of the cost impact of the Affordable Care Act (ACA).
In 2011, 25% of survey respondents expected the law would have little or no impact on cost. In 2013, only 9% expect to get off so easily. And now 19% of respondents expect cost to rise significantly (by 5% or more), compared to just 15% in 2011.
The additional expense would be added to the traditional annual increase in healthcare costs, which has been running at about 6 percent — more than double the rate of general inflation over the past five years.
Unfortunately, the ACA may affect some employers more than others. The hardest hit may well be those employers with a high percentage of part-time, seasonal, or low-wage worker populations because the ACA’s Employer Shared Responsibility provision may increase the number of employees who are eligible for benefits.
Regardless of how you feel about the new law, the costs to companies – and to the country – will be significant. Master of Public Health spells out the many costs in this infographic.
To get a sense of penalties that companies may face under the new law, you can view the Employer Penalty Flowcahrt, created by the Kaiser Family Foundation.
As you contemplate ways to save your company money, you may wish to audit your vendor fees and try to obtain lower rates. This exercise can typically save thousands of dollars per month, and most vendors will work with you on price in order to keep your business.
If you do this with your background screening vendor, please keep this in mind: we have prepared an eBook that reveals many industry secrets pertining to the factors that influence the price of background checks.
With the information provided in this eBook, you can negotiate significant cost savings for your company on this service alone, which can help relieve some of the financial burden that is coming under Obamacare.