Richmond, Va.-based Cherry Bekaert Benefits Consulting (CBBC) has announced that its Affordable Care Act (ACA) survey shows that the law is increasing costs for businesses.
The survey, issued in May 2014, covered topics such as hiring practices, cost impact of the ACA, medical plans and insurance benefits. CBBC specializes in consultation, implementation and administrative services for group health and welfare plans, including assessing and advising on the impact of the ACA. The survey was initiated to better understand how companies are handling the law.
According to CBBC, key results are:
- Employers say the ACA is driving costs higher. About 83% of respondents believe that the ACA will continue to put upward pressure on medical plan costs.
- The ACA has had a significant impact on hiring practices. One out of four respondents are hiring more part-time workers, with another 14.5% considering similar action.
- ACA results in fewer employer sponsored medical plans. Almost 25% of respondents indicated they are considering the elimination of employer-sponsored plans.
- Increasing costs of medical plans are affecting other employer-sponsored benefits. 25.7% of respondents indicated they have already reduced expenditures or are considering such action on dental, vision and life coverage’s as a result of the ACA’s impact on medical plan costs.
- Employers believe the ACA will have negative impact on business. 73% of respondents indicated that the ACA will negatively impact profits.
Complete survey results are available here.