If US healthcare reform hits employers’ pocket they will avenge on employees

In response to the US health reform under which companies will have to suffer higher costs on healthcare businesses plan a counter strike. According to the survey from professional services firm Towers Perrin employers cannot afford absorb higher costs, choosing instead either to reduce benefits, lower salaries or cut jobs.

87% of firms said they will very likely or likely cut benefits if reform leads to higher costs. Just 11% said they would accept lower profits. If reform reduces benefit costs to the companies, 78% say they are very likely or likely to retain the savings in the business.

Under the healthcare reform employers may be forced to expand their coverage, such as to part-time workers. Besides, healthy workers are supposed to find coverage elsewhere, leaving employers to pay for sicker, more expensive employees, Osterndorf said.

Of all the goals of health reform, cost containment was listed most frequently as an absolutely critical or high priority among the businesses in the survey, which ranged in size from roughly 1,500 to 100,000 workers.

But, Osterndorf said, employers believe that issues such as expanding access to coverage and reforming certain insurance practices have received more attention.

"Employers are saying, 'These are important social issues that are being addressed, but they don't necessarily hit on the issues that we're facing as employers,'" Osterndorf said.