June 11, 2010

HR Fact Friday: Most Employers to Wait to Cover Adult Children

Filed under: Insurance — Tags: , , , , — Paul @ 8:38 am

Many companies do not intend to comply early with a provision in the new health care reform law that will require group health care plans to extend coverage to employees’ young adult children up to age 26, according to a survey released Tuesday, June 8.

Among the 501 large employers responding to a Hewitt Associates Inc. survey, 77 percent said they will wait until the effective date before offering the coverage. Ten percent of respondents said they will extend coverage early to all eligible adult children, 9 percent said they will continue coverage for graduating students already covered in their plans, and 4 percent were undecided.

The law requires the extension to be made on the first day of the plan year starting after September 23, 2010. For calendar-year plans, which are the most common, the effective date of the provision would be January 1.

Source: Jerry Geisel, Business Insurance, a sister publication of Workforce Management.

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March 6, 2009

HR Fact Friday: Survey Finds Nearly 20 Percent of Employers Plan to Drop Health Benefits

Filed under: Insurance — Tags: , , , , , , , — Paul @ 11:15 am

A sign of the troubled times is that most new HR related survey data tends to fall on the negative side. Here is the latest case in point and it is sobering news indeed for employees of small businesses who currently have the option of enrolling in an employer provided health benefit plan.

Nineteen percent of employers responding to a new Hewitt Associates survey are planning to stop offering health benefits over the next three to five years, nearly five times as many as the 4 percent that said they were planning an exit strategy last year.

For those employers planning to continue to provide health benefits, keeping employees healthy has become the primary workforce issue in 2009, up from the number 2 position in 2008, according to Lincolnshire, Illinois-based Hewitt’s survey, “The Road Ahead: Emerging Health Trends 2009.”

(more…)

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