Another survey points out what most don't want to hear.
Overwhelmingly, employers say the Patient Protection and Affordable Care Act will increase their health plan costs, according to a survey by The Chelko Consulting Group, an independent health care benefits consulting firm.
[See Cost (out of) control]
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About 40 percent of employers project the long term cost impact of the law will range from 3 to 5 percent, while 26 percent say cost increases will be greater than 5 percent.
These cost increases are in addition to the normal year-to-year health care inflation associated with employer-sponsored health plans.
"Most large employers are already spending more and are clearly expecting this trend to continue," says Rick Chelko, president of The Chelko Consulting Group.
Following the Supreme Court's decision, responding employers say they plan to more aggressively invest in wellness programs, preventive services, management of high cost claimants and communication/education programs. Conversely, employers reported they are less likely to focus on changing eligibility rules, reducing the usage of questionable medical services, and consumer-driven plan designs.
Most survey respondents are say they intend to take a "wait and see" approach with exchanges. Most (76 percent) responded they are either "not sure" or "not very interested" in converting to a defined contribution approach. A strong majority (78 percent) responded that private exchanges "need to demonstrate their viability/affordability" for three or more years before they would consider offering private exchanges to their employees.
"Respondents expect accountable care organizations, patient-centered medical homes, and wellness programs to more positively impact future plan management results than exchanges, says Dirk Raderstorf, senior consultant in the Chelko Group.
Employers are also concerned over the Cadillac Tax, the survey finds.
The Chelko Group's Employer Survey was conducted from July 2-July 9 to measure plan sponsors' reactions to the U.S. Supreme Court's decision.
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