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Employers struggle with health benefit costs, but plan on keeping coveragePosted On Fri, November 12, 2010
Many businesses are grappling with the effects of healthcare reform. The latest research from global insurance broker Willis indicates that more than 75 percent of employers anticipate administrative costs will increase and nearly 90 percent believe group health insurance expenses will as well.
Despite the anticipated increase in expenses, the survey also finds that most companies plan on maintaining health insurance benefits, even if government run exchanges offer competitive rates. However, employers will be more likely to ask staff to contribute more towards healthcare than in the past.
Pete Gruenberg, Willis chief placement officer, says costs are a major concern for companies when it comes to health benefits.
"Early impressions suggest that the majority of employers do not plan to abandon their employer-sponsored group medical plans in 2014 when the state exchanges become available. This points to the commitment employers have towards employees," says Gruenberg.
Those who opt to forgo health insurance coverage will be faced with a tax penalty in 2014. A recent study by the Centers for Disease Control and Prevention found that 59 million Americans have been uninsured for at least part of this year.
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