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Beth Umland, director of research for Mercer’s Employee Health & Benefits business, on which industries will be hit hardest by rising health-car...
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About taken head hard hit according to a recent Mercer survey more than 60% of employers.
Are preparing themselves for an increase in health care costs under the Health Care Reform -- have to go into effect in 2014.
And some industries while there can be affected.
More than others -- employee health research director back and one joins us -- to tell us why fat.
So you -- today and it looks like a lot of companies are anticipating is higher costs which isn't really a surprise -- -- drilled out and look at the types of companies.
Maybe it's a little more interesting yeah that was one of the interesting findings of this survey is that.
Really health reform is hitting different industries very differently.
Employers that are in industries where they have a lot of part time employees are really the ones that are going to be hit the hardest because.
Really that the big aim of the health reform is to get more employees covered.
And so the employers in industries where they may not be covering a lot of employees like retail like hospitality where there's low margins and a lot of part time employees.
They have a lot of employees who aren't in that in the benefit programs and now they're being -- that these employees are being asked to extend coverage.
To a lot of employees that we're getting coverage before and that's a big cost increase how are the companies who.
Run these types of businesses responding I -- are they expecting to and are they willing to shell out the extra cash to cover these employees well tell it's gonna be tough because the average cost of health benefit plan right now for -- part of an employee is.
101000 dollars a year.
So to go -- as to add a lot of employees at that price tag is going to be hard -- so because the law only requires that employees with.
That worked thirty or more hours are covered but a lot of employers are doing -- immediate industries are looking to manage.
The employee hours so didn't keep employees under thirty hours a week that they don't have to extend coverage them.
Also notice that a lot of the responders said they were waiting until the Supreme Court decision and then now they're waiting until the election to decide how -- -- going to make changes and make plans what's the downside to -- well the downside -- not being ready and then being potentially liable you know for penalties if you're not you know if you're not meeting the requirements by 2014.
But how well a lot of folks are waiting for the Supreme Court decision I think now that that's happened.
You know they have -- are right we gotta we gotta get cracking and they're starting to to move forward only about 11% are saying I'm gonna.
But does the diehards are gonna hold out until November that's what's your own take on what this mean for the overall employment rate and -- Tugnutt companies trying to manage hours of talk by the under -- -- right the -- six it's pushing much 14% now and it's gotta go up.
Well it you know it really will depend on how employers in the end decide to respond to that some of them are just you know biting the bullet and and going to.
Let -- plays into their full time employee plans.
And -- are gonna just tried to avoid the whole thing entirely by by again managing you know those hours -- thank you so much that my pleasure.
A -- couple moments we're gonna find out.
