Forty-six percent of retail and hospitality industry employers said they will need to change their health care plans to comply with the requirement that coverage be extended to those working at least 30 hours a week.
“Extending coverage to more employees will be a significant new expense for these employers,” Tracy Watts, Mercer U.S. health care reform leader in Washington, said in a statement.
On the other hand, only 6% of all survey respondents and 9% of retail and hospitality industry employers said it is likely they will drop coverage in 2014.
The cost-savings may not be that significant and fears of losing their competitive edge are the key reasons why the overwhelming majority of employers intend to continue coverage, Ms. Umland said.
In addition, some employers are concerned about the challenges employees would face if they had to buy coverage through public insurance exchanges that are to be set up by 2014, Ms. Umland said.
The survey also found that nearly 75% of employers are on schedule or have completed 2013 health care reform law requirements that impose a $2,500 cap on flexible spending account contributions as well as reporting health care plan cost information on employees' W-2 wage and income statements.