An overwhelming majority of businesses will continue to offer Health coverage to employees in 2014 when key provisions of the Affordable Care Act (ACA) kick in, according to a nationwide survey of nearly 1,000 benefit professionals.
The study of by the International Foundation of Employee Benefit Plans found that:
- More than 85% of respondents say they either definitely will or are very likely to continue coverage in 2014.
- Nearly 10% are somewhat likely to continue coverage.
- Almost 4% said that they're somewhat unlikely or very unlikely to offer coverage.
- Only 1% will definitely not provide coverage under the ACA.
When asked their two top reasons for maintaining coverage, more than half of respondents (55%) cited retaining the loyalty of current employees, together with attracting and retaining future talent. "These employers recognize that Health insurance is an important benefit," says International Foundation of Employee Benefit Plans CFO Michael Wilson.
Some 9% of respondents cited the retention of tax advantages as a reason for keeping coverage; Another 7% said a major reason was to avoid tax penalties (Under the ACA, starting in 2014, employers that do not offer coverage will have to pay a non-tax-deductible penalty of $2,000 per full-time employee.
Lower- and middle-income employees of companies who drop their Health care plans would be eligible for federal premium subsidies to buy coverage through state insurance exchanges.
To learn more about dealing with the ACA in your business, please get in touch with our agency's Benefits professionals.