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Small employers anticipate health care hikesPosted On Thu, July 29, 2010
Health care reform may have some unintended consequences. A recent survey by Fidelity Investments indicates that many employers plan on revisiting the health insurance benefits they offer employees.
Of the 459 employers surveyed, 20 percent said that they were considering dropping health insurance as a benefit. However, 64 percent indicated that discontinuing health insurance is something they weren't planning to do.
Increased costs is one factor motivating employers to revisit their health care benefits. Financial woes seem to be hitting small employers the hardest, with just under 50 percent saying that they anticipated a significant hike in health care-related expenses.
"There is a lot of confusion out there about the real impact of the health care legislation and the accompanying costs," added Patel. "Depending on a company's strategy in designing its future health plans, cost increases can be minimized."
Health care costs are expected to continue their upward movement in the future. Some employers have begun to sponsor wellness programs that aim to make employees healthier and in turn, reduce medical expenses.
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