Financial Impact of Health Reform on Employer Benefits not as Significant as Anticipated

In spite of employer fears, the financial impact of the provisions in the Affordable Care Act (ACA) have not been as significant as anticipated for most businesses and fewer U.S. employers responded that they plan to drop coverage due to the law’s mandate than was reported in 2010. These are some of the key findings from a new 2012 employer survey conducted by the Midwest Business Group on Health (MBGH) and co-sponsored by the National Business Coalition on Health (NBCH), Business Insurance and Workforce Management.

Many survey respondents indicated support for the ACA provisions that enable changes in provider payment, medical care coordination and providing medical cost and quality information for consumers. The survey also revealed divergent views among employers on whether the Supreme Court will or should strike down the individual mandate or the entire Act. This is the third national survey in a series conducted by MBGH since 2010 to gain an understanding of areas of most concern to employers related to health reform, and to help educate and inform purchasers and policymakers.

“While employers uniformly expressed concern with the administrative costs and reporting burdens in the law, there was surprising support for many of the coverage and system reform provisions,” said Larry Boress, MBGH president and CEO. “It’s clear that what some call ‘Obamacare’ is actually a compilation of insurance, health system and coverage reforms that are perceived by many employers as having some good, as well as having some costly, impacts. In addition, as employers have evaluated their options, the vast majority have determined there is value in continuing to offer health coverage in order to retain and recruit talent, as well as to ensure a productive workforce. Small employers fear the potential financial impact of future ACA changes, while larger organizations see the potential of improved cost and quality improvements as enabled through many of the requirements of the ACA.”

The full report can be ordered by contacting MBGH at info@mbgh.org.