Though far from fully implemented, the controversial healthcare overhaul law continues to create quite a stir. Despite overwhelming support from such relevant groups as the National Nurses Organizing Committee, Americas largest registered nurses union, opposition from other groups has been high. There is now fear that employers will start dropping their insurance offerings. Some fear that the recession, the cost of the healthcare law, rising health costs, and new regulations in the law will combine to provide enticement for large employers to drop their current healthcare coverage.
The consulting firm Towers Watson recently conducted a survey on healthcare reform, the results of which support this notion. The report says that ?the overwhelming majority (90 percent) of employers believe health care reform will increase their organization?s health benefit costs.? 88 percent of responding businesses also reported that they plan to push the brunt of higher health benefit costs onto their employees, while 74 percent reported their intention to change plan options, restrict eligibility, or increase deductibles and co-pays. However, 82 percent of employers said they intend to create a "culture of health by providing workforce health improvement/wellness initiatives." Furthermore, 88 percent of employers said that beginning in 2014, when large employers must offer minimal essential coverage to full-time employees, that they will provide health benefit coverage. Employers are venting frustrations about the economy, with a little over 10 percent reporting that they plan to enact hiring freezes and lay off existing workers because of the healthcare reform law. 43 percent said that they plan to reduce or eliminate retiree medical plans.
The 2010 survey by Financial Executives International, ?CFO Quarterly Outlook Survey,? reported that almost 75 percent of small and large American businesses fear that the law will impact their company negatively. They think that the healthcare law will raise, rather than lower, their firms' healthcare costs. Documents have been found which suggest that AT&T and Caterpillar, among other companies, may drop current coverage because the tax penalty for dropping the plan would be less than continuing to pay for it. For instance, AT&T currently pays $4.7 billion to provide coverage for employees, but the fine for dropping coverage would only amount to $600 million.