Firms More Bullish On Coverage

A new survey by the benefits consulting firm Towers Watson reveals significantly more companies are likely to retain employer healthcare benefits after the primary components of the Affordable Care Act are deployed in 2014.

According to the survey of 440 midsize and large employers (500+ workers), 88% say they intend to offer health insurance to their workers for the “foreseeable future.” That compares to just 71% in last year’s survey.

The New York-based Towers Watson noted that the renewed commitment to employer-based healthcare benefits comes even though costs are expected to increase 5.3% per employee in 2013, reaching an average of $11,507.

Another 77% of firms say they consider healthcare benefits as “core to their employee value proposition” over the next several years. However, more than a third of those companies also say they will examine their healthcare benefits within a total rewards framework by 2013. Another 39% say they plan to do so during 2014 or 2015.

“Affordable healthcare remains a top priority for employers and a key component in employee value propositions,” said Randall Abbott, senior healthcare consulting leader at Towers Watson. “However, due to the increasing costs of medical benefits and the additional burden of compliance, business leaders need to keep the pressure on to control costs, increase workforce accountability and engage workers to lead a healthier lifestyle.”

Towers Watson said it will release the full results of its survey next month, according to spokesperson Binoli Savani.