As brokers and employers get ready to meet the benefits challenges posed
by health care reform, many American workers have concerns about how the
reforms will affect their worksite benefits. According to Health
Care Reform: The Waiting Is Over, the third in a series of
research briefs based on The Prudential Insurance Company of America’s
(Prudential’s) Seventh Annual Study of Employee Benefits: Today
& Beyond, nearly half (46%) of employees believe it is likely
that the cost of health insurance will increase overall and nearly a
third (31%) say it’s likely that fewer employers will offer health
insurance coverage.
Brokers and employers both anticipate consequences from health care
reform, with brokers expecting a larger impact. Both groups agree that
benefits funding will be most affected. Among their top concerns,
brokers expect the number of employee benefits offered (80%) and benefit
communications (78%) to be highly impacted, while employers note
benefits service and support (56%), as well as number of benefits
offered (55%) as their top concerns.
Seventy-two percent of brokers say that “expertise and thought
leadership on health care reform” from insurers is either critical or
very helpful.
“Brokers tell us that helping clients navigate heath care reform and
lowering clients’ benefits costs are their most critical priorities,”
says Vishal Jain, vice president, Strategy and Planning for Prudential
Group Insurance. “They are looking to us, the carriers, to provide the
marketing, education, and communications that will help employers to
continue to deliver strong benefit offerings.”
Mid-size employers (500 to 9,999 employees) anticipate a greater impact
on all aspects of employee benefits compared to small or large
companies. Sixty-eight percent say that health care reform will have a
significant impact on employee benefits funding, and 61% say it will
have a significant impact on employee benefits communications. Large
companies (10,000+ employees) were less likely to say that the number of
employee benefits offered will be impacted.
Twenty-nine percent of employers say they are at least “somewhat likely”
to cease providing health care benefits to their employees. Those
companies who say they are leaders in health care reform adoption are
most likely to say they are not considering scaling back on benefits
offerings.
“Our survey has given us insights into the concerns of employers and
brokers alike as the employee benefits landscape undergoes significant
changes,” notes Jain. “As a carrier, our role is to help both groups
meet the challenges ahead by providing consultative expertise, as well
as access to an array of voluntary benefits and services, to help
employers continue to offer benefit programs that attract and retain
employees, even as they potentially implement significant changes to
healthcare benefits.”
Health Care Reform: The Waiting Is Over is the third in a series
of five research briefs that highlight the major findings from
Prudential’s Seventh Annual Study of Employee Benefits: Today &
Beyond. The research was conducted via the Internet during July
2012, and consisted of three distinct surveys of plan sponsors, plan
participants, and broker/consultant audiences.
Prudential Group Insurance manufactures and distributes a full range of
group life, long-term and short-term disability and corporate and
trust-owned life insurance in the U.S to institutional clients primarily
for us in connection with employee and membership benefits plans. The
business also sells accidental death and dismemberment, and other
ancillary coverages and provides plan administrative services in
connection with its insurance coverages.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has
operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit http://www.news.prudential.com/.
Prudential, the Prudential logo and the Rock symbol are service marks
of Prudential Financial, Inc. and its related entities, registered in
many jurisdictions worldwide.
Group coverages issued by The Prudential Insurance Company of
America, 751 Broad Street, Newark, NJ 07102.
0240966-00001-00
