Employer provided healthcare continues to be a strong recruitment tool

LIVONIA, USA: A recent survey conducted by the American Society of Employers (ASE) and Priority Health suggests that an overwhelming majority of Michigan employers who provide healthcare coverage to their employees will continue to do so next year, even with the new government options available through Affordable Care Act (ACA).

The survey, which included the results of 223 Michigan-based organizations, found that 98 percent of organizations surveyed will offer employer-sponsored health insurance coverage to employees for the 2014 plan year.

Eighty-two percent of those surveyed plan to offer coverage in 2015, with 18 percent undecided.

"The fact that we see so few employers dropping coverage is not surprising. The need to attract and retain talent will always be critical for employers, and offering health benefits can still make the difference in attracting quality employees," said Kevin Marrs, director of Survey Services with the American Society of Employers.

In fact, 69 percent of respondents believe providing healthcare coverage to be "very important" in their efforts to recruit.

Although employers will continue to provide health benefits, the data suggest that there is still strong concern about the cost. Forty percent of those responding reported that they are "extremely concerned" about the future costs of health care.

For years employers have been striking a delicate balance between cutting healthcare costs and ensuring their healthcare plans remain effective tools for attracting and retaining the best people.

"Since nearly 100 percent of employers say that offering health benefits is important for attracting and retaining employees, it's not surprising the future of healthcare has their attention," said Marti Lolli, director of Health Care Reform at Priority Health.

"It has our attention, too. That's why we're committed to providing the most up-to-date, understandable information and solutions to enable employers to continue to offer benefits to employees."

In the last 12 months, employers have also looked to increase the employee's share of the co-pays and health deductibles. Forty-one percent of those responding have increased the amount of health deductibles. Another 40 percent have increased the amount of the co-pay/coinsurance. Forty-three percent of participants are considering such action.