Health care and the future of Obamacare have been hot issues for presidential candidates this election season. A new report from the International Foundation of Employee Benefit Plans found out how employers would react if the Affordable Care Act (ACA) is repealed.
1. They wouldn't undo what's been done: Three in four (78%) employers would keep in place at least some of the provisions they have already implemented in their health plans.
2. They expect to see new legislation: Over half (58%) of employers anticipate a new health care reform bill being passed within the next four years if Obamacare is repealed.
3. They might be singing The Jackson 5's "I Want You Back": Employers would want some provisions reinstated if Obamacare was repealed. The top three are: Elimination of preexisting condition exclusions (38% would want this reinstated), coverage of adult children to age 26 (31%), and increased wellness incentives (31%). Employers have seen certain ACA provisions have a positive impact on their workforce.
4. They aren't changing lanes: Most aren't planning to undo health plan changes made to avoid the Cadillac tax. Looking ahead to 2020, 28% of employers are currently working on changes to avoid the Cadillac tax and 38% plan to do so before the tax takes effect. The most common actions include moving to a high-deductible health plan, shifting costs to employees, dropping higher cost plans or reducing benefits. Of employers taking these actions, 68% report they are unlikely to undo these plan changes if the Cadillac tax is repealed.
5. They are keeping the coverage: Employers will continue offering health care coverage for all full-time employees. Only 3% said it's unlikely they will be offering health care benefits five years from now.
Whether or not Obamacare is repealed, it will have left an impact on the health care landscape. Employers are taking cost-shifting measures in response to Obamacare and to avoid the Cadillac tax--These efforts are shaping how Americans use and receive health care coverage.
For the full survey report 2016 Employer-Sponsored Health Care: ACA's Impact, visit www.ifebp.org/ACA2016.