Most employers say they do not plan to shift healthcare costs toemployees in response to the healthcare-reform law, but they holdfar different views when it comes to what they expect theircompetitors to do, according to a recent survey.

In it's 2012-1013 Healthcare Reform Survey, insurance-brokerWillis says 55 percent of employers believe competitors will atsome point shift costs to employees as a way of dealing withadditional expenses related to the healthcare-reform law. But thesurvey notes that only 34 percent of employers say that they mighttake this same action.

Willis says, “Employers are overwhelmingly predicting thatsimilar employers will raise employee contributions, and thisyear's survey responses indicate that employers are more likely topass on costs for not only employee coverage, but alsoemployee-paid dependent coverage.”

However, with a far smaller percentage of employers indicatingthat they plan to shift costs themselves, Willis wonders ifemployers have a true grasp of the costs associated with thelaw.

“While 60 percent of employers state that avoidinghealthcare-reform-cost increases is very important to theirbusinesses, in Willis' view, employers are relying upon inaccurate'perceptions of cost' as they plan their responses to healthcarereform,” the broker says.

Moreover, Willis says that over half of respondents have yet todetermine the cost of healthcare-reform compliance.

“However,” the broker adds, “among the employers who havecalculated, or are in the process of calculating, the cost, 61percent indicate that the total impact of all healthcare-reformchanges has increased costs, with 17 percent of respondingemployers noting that costs have increased by over 5 percent.”Willis adds that survey responses do not show the reformsdecreasing employer costs.

The survey also notes employer uncertainty surrounding thestate-based healthcare exchanges as well. While the 2014exchange-enrollment period is approaching, Willis says two-thirdsof respondents doubt the exchanges will be ready to acceptenrollees on time.

Willis says 20 percent of employers expect competitors toterminate group-health plans to encourage migration to theexchanges, and 30 percent expect employees of other companies to beencouraged to join the exchanges. “This paints a rather dismalpicture of employer sponsorship of group-health benefits.”

But again, Willis notes differences in what the employers planfor their own companies when it comes to benefits and rewards.“Primarily, employers say they expect to maintain their plans,”says Willis, adding that employers say they are more likely toexpand health coverage as needed without reducing salaries,vacations and bonuses.

“Taken as a whole, it appears that employers expect that similaremployers may take more radical action than they themselvesanticipate taking,” Willis concludes.

However, Willis also says the responses with respect tomaintaining plans while not adjusting other rewards may stem frommany employers assuming that healthcare reform will generally notaffect their costs.

“Employers are still coming to terms with the impact ofhealthcare reform, and many employers still seem to function in a'shock mode,'” says Jay Kirschbaum, practice leader, National Legaland Research Group, Willis Human Capital Practice, in astatement.

He adds, “The survey suggests that employers continue torecognize the value of providing medical benefits, how importantthose benefits are to their employees, and that providing benefitsallows them to attract and retain the employees they need.Therefore, they generally plan to continue offering competitivemedical benefits. However, they are considering several potentialoptions, even including the possibility of coverage through stateexchanges.”

The survey, conducted between Nov. 8 and Nov. 30, 2012, polledmore than 1,200 employers with varying benefit plans. Over a thirdof respondents have 100 and 499 employees, and a little over 11percent represent employers with more than 2,500 employees.