Report Reveals Key Issues for U.S. Companies on Health Care Reform

Here are the key findings from a recent Ernst and Young report concerning healthcare reform:

  • Rising costs associated with health care in general as well as those which stem from compliance with the new health care reform law are key concerns for employers.  Thirty-four percent of respondents said their company’s biggest challenge or risk arising from the law will be the impact of health care costs on profitability, while 31% cited the impact of added expenses associated with complying with the law.
  • Only 39% of respondents reported their companies have evaluated what the full effect of the health care law will be on the cost of employee health benefits.  Of this group, 43% said they anticipate significant cost increases as a result of the law and only one percent said that they expect it to decrease costs.
  • At the time of the survey, 92% of the respondents said they intend to continue offering health care benefits to employees, while eight percent said they were considering discontinuing employee health care benefits.
  • More than three-quarters (76%) of respondents said their companies are at least somewhat likely to increase the amount employees pay for their health care coverage as part of their cost-reduction strategies.