Posts Tagged ‘plan changes’

Caught between a rock and a hard place employers increase employees share of healthcare costs

Wednesday, October 20th, 2010

According to a recent survey by the National Business Group on Health, 63 % of employers are planning increases for employees’ share of healthcare costs in 2010. Not much of a surprise that employers are passing on a larger share of the costs given the ever increasing cost of healthcare, the same survey reported an average 8.9% increase in overall costs for 2011. What is a surprise is that 35% of employers are planning a significant enough increase that they will lose their “grandfathered” status under the new healthcare reform law. (Mercer) Given the ramifications of losing “grandfathered” status many company are caught between a rock and a hard place when it comes to determining if they should or should not pass on increased costs.  If you are not sure if any of your plan changes for 2011 will impact your “grandfathered” status make sure to discuss this with your insurance broker before you get too far into the open enrollment process. Loss of “grandfathered” status has a major impact on the communications you will need to provide employees.