The ACA, Employer Spending, and Your Business


Though filled with tumultuous changes and constant headaches, employers are now adapting to what it means to remain compliant with healthcare regulations under the ACA. While news is still filled with articles revealing just how expensive it will be for employees with premiums set to increase yet again, other studies reveal that employer spending per employee is on the decline.

The reason for this is simple: Employee participation in ACA programs have remained steady in the preceding years. This has helped employers limit how much they’re spending on healthcare as in 2016 alone, 91 percent of employees were eligible for benefit programs and 69 percent participated. These statistics represent the status quo established in 2014 and 2015, with relative numbers of 89 and 69 percent for 2014 and 91 and 70 percent in 2015.

So, how have employers kept costs under control?

Factors Influencing Healthcare Costs for Employers

Between 2014 and 2016, monthly premiums related to the ACA have risen only 5 percent. Contrast that with the 13.9 percent increase realized between 2010 and 2013 and you’ll see why employers are in a better position now than they were when the ACA was first signed into law.

Of course, issues differ for employers. For example, large employers are less likely to feel the burden and impact of benefits whereas smaller employers are often more overwhelmed by shifting costs and requirements.

Trends in the Current Healthcare Landscape

Beyond controlled costs, there are other trends that some employers find concerning regarding the future costs of healthcare coverage.

Here are just some of the most current trends to be aware of:

  • Employees under the age of 26 are the highest in terms of eligibility by the lowest in terms of participation.

  • Employees with the highest participation in health plans are those ages 55 to 64.

  • Employees continue to delay retirement, meaning there is a broader range of ages in the workforce (which can sometimes complicate benefits).

Stay on Top of Spending and Trends

As an employer, you’ll spend not only on benefits themselves but also ongoing compliance with the ACA and other related needs. By signing up for Flock (for free, might we add), you can eliminate compliance-related costs and enjoy a system that centralizes data, allows for 24/7 benefits access (for employees who are enrolled), and track time off.

When you’re ready to simplify benefits, sign up for Flock. Controlling spending and tracking enrollment and trends just got a lot simpler.

 

We want to hear from you: Has your healthcare spending remained stable over the past three years, or have you been burdened with higher costs? Which factors have most influenced your answer? Share your thoughts in the comments!