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How employers will respond to the rule to extend coverage to all employees working 30 or more hours per week seems to depend largely on how many additional employees could potentially gain coverage. In industries that typically do not use many part-timers, like manufacturing, employers that are not already in compliance are likely to make employees eligible for the full-time employee plan or add a new, low-cost plan for the newly eligible employees (68%). On the other hand, retail/wholesale employers not currently offering coverage to all employees working at least 30 hours a week are more inclined to change their workforce strategy so that fewer employees meet that threshold – 67%, compared to just 41% of manufacturing employers likely to take this approach. Employers that were counting on some of their low-paid employees qualifying for Medicaid when it expands to include individuals with household income less than 133% of the federal poverty level (FPL) may have to rethink their plans in light of the Supreme Court ruling that makes it easier for states to opt out of the expansion (see “State Decisions About Health Reform Could Impact Employers”). A fifth of survey respondents have benefit-eligible employees earning less than 133% of FPL; in industries with large part-time populations this rises to as much as 50%. Other survey findings include: Few survey respondents – 6% – believe it is likely that they will drop their medical plans after the public insurance exchanges come online. This rises to 9% among retail and hospitality employers. Employers have a lot to do to prepare for reform – especially those that were waiting to develop a strategy until the Supreme Court decision (56% of survey respondents). While 11% will continue to wait until after the November elections, most will now move ahead. In the short-term, employers need to produce and distribute summaries of benefits and coverage (SBCs) and more than one-third of respondents (36%) say they have not yet begun or are behind schedule. Employers are doing better with other near-term tasks, include preparing for 2012 W-2 form reporting in early 2013, implementing the new $2,500 cap on health care flexible spending account contributions and implementing coverage with no cost sharing for women’s preventive services under non-grandfathered plans – about three-fourths say these tasks are on schedule or complete.
How employers will respond to the rule to extend coverage to all employees working 30 or more hours per week seems to depend largely on how many additional employees could potentially gain coverage. In industries that typically do not use many part-timers, like manufacturing, employers that are not already in compliance are likely to make employees eligible for the full-time employee plan or add a new, low-cost plan for the newly eligible employees (68%). On the other hand, retail/wholesale employers not currently offering coverage to all employees working at least 30 hours a week are more inclined to change their workforce strategy so that fewer employees meet that threshold – 67%, compared to just 41% of manufacturing employers likely to take this approach.
Employers that were counting on some of their low-paid employees qualifying for Medicaid when it expands to include individuals with household income less than 133% of the federal poverty level (FPL) may have to rethink their plans in light of the Supreme Court ruling that makes it easier for states to opt out of the expansion (see “State Decisions About Health Reform Could Impact Employers”). A fifth of survey respondents have benefit-eligible employees earning less than 133% of FPL; in industries with large part-time populations this rises to as much as 50%.
Other survey findings include:
Rebecca Mooreeditors@plansponsor.com