Employers are mainly taking a "wait and see" approach beforemaking major changes to how they offer employee benefits, and mostsay they still feel it is important to continue to offer benefitsto their workers even if distribution and delivery methods change,a recent survey reveals.

The Willis Group survey questioned over 1,000 employers, 62% ofwhich employ 499 or fewer workers. In a summary of findings, Willissays nearly 75% report an increase in their health-plan costs from2013 to 2014. 

However, employers generally do not plan to respond byeliminating benefits. Willis says in a summary of the survey'sfindings, "Despite some highly visible reports in the media,employers generally do not plan to eliminate group medical benefitsas a part of their compensation practices." Willis says over 60%rated "Moving away from benefit engagement" as "extremelyunlikely," and another 17% rated it "somewhatunlikely." 

Willis says, "Employers view their medical benefits as animportant and desirable part of their compensation offerings andthey will take steps to manage costs so that they can continue tooffer benefits to their employees."

Steps include cost-shifting, but not exclusively and not in allcases. Willis says 22% of respondents kept employee contributionsthe same this year. "Strategies other than cost shifting…includeincreasing new-hire waiting periods, reducing benefits tominimum-essential coverage and managing seasonal and variable-houremployees to reduce the number of potentially benefit-eligibleemployees, says Willis.

Private exchanges are another option employers are exploring,with 20% stating they are considering this path and 8% reportingthey have strategies in development. "The majority of respondentsalso indicated that they are likely to promote employee choice,engagement and consumerism as part of their benefits strategy,"says Willis.

Just 10% of employers are considering the complete eliminationof spousal coverage, recognizing the "potential employee-relationsramifications" of doing so, says Willis.

"Overall," Willis states, "employers are taking steps to adjustcontributions and eligibility within the parameters set by thePatient Protection and Affordable Care Act (PPACA) regulations,though they are doing so with a key objective in mind: continuingto offer benefits to their employees"

Interestingly, while the cost of PPACA is a top concern foremployers, nearly two-thirds say they have not identified the coststo their businesses. Forty-four percent say they have notspecifically identified the cost of the Cadillac tax. Willis says,"While this seems counterintuitive considering the significance andattention applied to the costs of healthcare reform, itdemonstrates that employers' focus has, in many cases, been drawnto the immediate compliance needs and administrativedifficulties. 

"Despite the fact that industry consultants have identified theconcern over the impact of the Cadillac tax to their clients, lackof employer engagement on this topic might be because employersview the ongoing cost analysis as a 'luxury' as compared to theday-to-day administrative requirements demanded of them moreimmediately."