The Patient Protection and Affordable Care Act (Health Care Reform) affects all businesses. However, employers with 50 or more full-time employees will be required to make some significant decisions regarding their options. These options include providing affordable health insurance to all employees, electing not to provide health insurance, or developing a hybrid plan.
Multiple factors should be considered before making a decision to retain or discontinue employer-sponsored health insurance coverage. Some of those factors include the current and future costs of providing coverage, the impact the decision may have on employee acquisition and retention, comparisons to other organizations, and the alternative uses of potential cost savings.
New regulations and changes to Health Care Reform are likely to be issued as the process moves forward. However, organizations should be prepared for the January 1, 2014 implementation date. The decisions made by an organization could have a significant financial impact. While considering health insurance changes, organizations should identify someone to monitor the relevant issues and impact of Health Care Reform, follow what is happening with the creation and organization of federal and state health care exchanges, and review employee benefit plan design and options.