Employers Committed to Offering Health Care Benefits

Health care costs expected to increase 5.9% in 2012, but benefit offerings will begin to shrink. A recent survey conducted by Towers Watson which measured the likelihood of employers continuing offering a sponsored health plan brought about some interesting results. 

The survey polled 368 midsize companies regarding their current plan and what changes they plan to make in 2012.

Some of the eye-opening results include: 

• 29% are unsure if they will continue sponsorship of a health plan
• 45% will rethink their health care strategy in 2012 
• 54% will discontinue benefits to both pre-65 and post-65 retirees 

The survey also found that while employer health care costs will rise at a noticeably lower rate during 2012 compared with 2011 (5.9% versus 7.6%, respectively), the vast majority of employers (88%) are planning to take steps to control their costs and avoid the impact of health care reform's excise tax. 

Roughly half (45%) will rethink their long-term health care strategy during 2012, and many are uncertain how they will respond to the looming impact of state-based insurance Exchanges in 2014.

If your company is not thinking like the 88% that are taking steps to control costs without cutting benefits completely out - pick up the phone and call Health Benefits US Inc today - or drop us an email.   

It is not too late to get it right for 2012!