What Will You Do If Healthcare Reform Increases Costs?

Regardless of your politics there is no denying that the overriding attitude in the US at present is “uncertainty” when it comes to health care and health insurance.

With no definitive health care reform plan on the table – save a severely bastardized version of the president’s original bill – Americans really have no idea what is going to happen to their employer-sponsored benefits plans.

However, employers are beginning to think about what THEY’LL do should any bill make it through Congress that results in higher health insurance premiums. This table shows how some US employers are likely to respond to increases in cost.

Employer Actions if Healthcare Reform Increases Employer Cost
(% responding very likely or likely)
Reduce benefits 87%
Increase prices for customers 38%
Reduce employment 30%
Reduce salaries/direct compensation 27%
Accept reduced profits 11%
Other 6%
Source: Towers Perrin’s Health Care Reform Pulse Survey, September 2009


Furthermore, nearly one-third of employers surveyed said they would assess the impact of proposed fines for non-compliance and if the fines were less than providing health coverage they would consider scrapping their employer-sponsored plans altogether. What can you do?

Arm yourselves with information and be prepared for any changes that may come down the pike at any time. Although any changes to the current US system would not take immediate effect, you can be certain that some changes will be implemented and everyone needs to be on the alert for how the changes affect them. And just the mention of “reform” will surely cause some healthcare stakeholders to make pre-emptive moves to better position themselves for any impending government intervention, so be prepared.

Business owners need to know how changes will affect their bottom line AND how to mitigate any additional expenses. Business owners DO have options available to help ease the burden of potential implementation of the president’s anti-competitive reform. Business owners with employees who experience low claims can benefit if their plans are structured properly; and businesses with high claims also have options available to them to help ease the strain.

Individuals and families need to know that they can shop around and they too can avail themselves of cost-saving measures designed to ease their financial burden with regards to money spent on health care.

CYA doesn't handle yacht insurance exclusively - CYA has the experience, the expertise and the established strategic partnerships that allow us to provide individuals and business owners alike with the sound counseling they require in order to maximize their health insurance dollars and effectively and efficiently manage their medical benefits.