Health Care Reform Here to Stay – What Do Employers Have to Do Next?

This post by Ben Tedore

Posted in Employees, Human Resources, Insurance

With the landscape of employer-provided health care potentially changing over the next few years, employers should consider their future plans related to their role in employee health care. They may have to make some big decisions about whether to continue providing coverage to their employees. The Pay or Play penalties provide some incentive for employers to continue coverage, since they will be at risk for significant penalties if they do not. However, employers may decide that paying the penalty is more cost-effective than continuing to pay the ever-increasing costs of health care for employees and their families.

On the other hand, uncertainty among employees about the quality and cost of individual health coverage continues to make employer-provided health coverage an attractive recruiting and retention tool. Because of these advantages, most employers plan to continue offering coverage for now. The additional uncertainty for employers, with compliance obligations hinging on court decisions and the political process, has made many companies hesitant to make any large-scale changes.

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One Response to “Health Care Reform Here to Stay – What Do Employers Have to Do Next?”

  1. On January 7th, 2013 at 8:35 pm Frank Welsh Jr. Said:

    Hey Ben I’m sure you’ve a ton of responses to this but this is most important. Since the first implementation of health reform in 2012, I have been doing research on exactly what individuals and businesses need to do regarding health insurance.
    Although this is nothing new, there is an option for businesses to offer employee health benefits without breaking the bank with “traditional” group insurance. It’s called an HRA section 125 or more commonly known as a defined contribution health plan.
    This has been adopted by huge companies in the East like Darden Restaurants and Sears, but has yet to catch on here in the West side of the country. This platform basically gives allowances to their employees for their OWN individual health insurance, which can be any amount, $1-$1000 a month. Giving employees funds for their individual health insurance without an HRA section 125 platform is illegal considering ERISA and IRS laws. This allows companies to control costs of employee health benefits while retaining employees with sought after benefits. My company and only a few others in Nevada are gaining from the benefits of this platform which includes major tax saving for both employers and employees.

    Please, if you would like to know more or know someone who would like to know more contact me. 775-287-8495 or email. Thank you.

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