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The Affordable Care Act (Obamacare, ACA) has no doubt sparked heated debate throughout the country.  Progressives have claimed the ACA is working due to modest projected premium increases on the Exchanges for 2015. Conservatives have countered that health care costs are escalating due to the ACA. However, the political arguments being had are over health Exchanges, where only 7-8 million individuals purchased health care coverage in 2014.  There are 20 times that many people relying on employer provided health benefits (U.S. Department of Commerce Economics and Statistics Administration).

There is a growing burden that has been placed on employer-provided healthcare due to the ACA, effecting premiums and affordability and driving up costs for employers.  Most discussions taking place are focusing on the number of people who are taking advantage of the exchange, but the reality is that many individuals may experience premium increases and stagnant salaries resulting in less pay and possibly a decrease in benefits, or increase in health associated costs.

“First as candidate and then as president, Barack Obama promised that under his health plan, the typical family would enjoy savings of $2500 a year. The latest KFF/HRET figures are an unpleasant reminder of just how badly that promise was broken.  Average premiums for employer-sponsored family health insurance coverage grew from $13,375 in 2009 to $16,834 in 2014–an increase of $3,459 or 4.7%. This is more than double the annual increase in earnings per FTE worker (2.2%) during the same period.” (Conover, Chris)

Employer-provided health plans are quickly escalating to an unaffordable rate for the average American worker under the ACA. With most implementations of the ACA solidifying in January, 2015, it is extremely important to have a solid plan in place to offer ACA compliant coverage at a cost that will work for companies and employees.  Call Essential Personnel to discuss strategies on how your company can overcoming these additional burdens facing your company. Our consultants can help you decide the best solution for your company.

Sources: Income, Poverty, and Health Insurance Coverage in the United States: 2012, Census.gov
Growing Burden of Employer-Provided Health Care Has Accelerated Under Obamacare, Forbes.com, Conover, Chris
U.S. Department of Commerce Economics and Statistics Administration

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