WASHINGTON – Approximately
20% of retailers will reduce worker hours before the Affordable Care Act is
fully implemented next year, according to a just-released survey by Mercer,
Congressional Quarterly reports. Around 28% of employers will increase the
amount of employee contributions to health coverage for families, while 13%
will bump up employee costs for worker-only coverage. An additional 2% will
discontinue subsidized coverage for worker dependents.
Around 9% of survey
respondents said the Affordable Care Act would add a less than 1% increase to
business expenses. A third of those surveyed said employees working 30 hours or
more per week currently did not have access to health insurance through the
company. Forty-six percent of healthcare services, hospitality and retail
industries do not offer worker coverage.
The survey also found that
around 12% of businesses said employee hours would be reduced to avoid having
to offer insurance. For retailers, that percentage jumped to 20%. Cumberland
Farms recently announced it would expand the number of employees eligible
for health care at its locations.
Nearly 25% of those
surveyed still haven’t figured out how to track employee hours for those with
varied schedules, while around 32% “don’t know” whether the new requirements
will add to their costs. More than a third of employers have already begun
action to evade a tax on expensive plans that will go into effect in five
years. Many employers are looking into expanding or adding wellness programs to
help workers improve their health.
“This provision could be
the real game-changer,” said Tracy Watts, who leads Mercer’s health care
reform. “Employers have consistently told us that they will do whatever is
necessary to avoid the tax, and given the rate of increase in health benefit
cost, that may require fundamental changes in the type of health benefit they
provide and how they provide it.”