KIMT News 3 – A study into the effects of the Affordable Care Act on business, shows a troubling new trend.
The study published from Aflac says that 14 percent of businesses reduced major medical options and 56 percent of companies said they increased either their employees co-payments or their share of premiums.
Many companies say the main issue is trying to make coverage available to everyone and in order to do so, the costs must fall on the employees.
One insurance specialist says it puts businesses in a tough position.
“I think employers have had no choice. Costs are increasing so rapidly and there’s just no way to keep up. They cannot keep in business and continue to pay these increasing premiums with the additional benefits and expenses that are required with Obamacare, there is just no way,” said Ann Harty, Employee Benefits Specialist with 1st Insurance.
The study also finds that seven percent of companies offered their employees health insurance through the new exchange.
Other companies are taking a more direct approach by providing wellness programs to their employees.
“We actually are seeing some companies doing away with providing healthcare at all, which is horrible and that is not a good sign, but we are going to continue to see the shift. I think the laws to change the situation dramatically and the laws going to continue to change and evolve and it’s going to have to in order to survive,” said Harty.