Did You Know? Employees rank benefits as the most important factor to job satisfaction.

HR Professionals - don't let the recession and Health Care Reform scare you into dropping employee health coverages.

A Solution Exists! Read this newsletter and learn how to save your company money while keeping great health benefits for your employees.

NIFB Study: 57% of small employers are likely to drop health coverage by 2014

In July 2011, the National Federation of Independent Business (NFIB) released a new study, "Small Business and Health Insurance: One Year After Enactment of PPACA", focused on the affect health reform has had on employee health benefits.

The study predicts that less than 25% of small businesses will offer group health insurance in 2014.

According to the study:

• 42% of small employers offer group health insurance today

• 57% of those small employers are likely to drop health coverage by 2014

• 100% of the small employers that are likely to drop health coverage, also said they would continue to provide coverage to employees if a "tax-excluded contribution" solution existed (the tax-excluded contribution solution exists via defined contribution health plans)

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In This Issue:

Reality Check: 30% of Employers will Stop Offering Health Benefits once Obama's Laws kick in

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Helping HR Professionals Lower
Insurance Costs

• Monitor legislation and its potential impact: HR professionals should constantly monitor changes in legislation to make sure their benefits programs are compliant with local, state and federal laws. The 2010 health care reform law in particular will affect how all organizations administer health care benefits. This new law is extremely complex, with some parts executed immediately and other parts implemented over the next several years. HR professionals will be relied upon to lead their organizations through this complex legislation.

• Communication is vital: Employee benefits play an important role in employee satisfaction and engagement. However, a disconnect exists between the dollar amount organizations spend on benefits and the employees’ perception of the value of their benefits package. It is important that HR professionals help employees fully understand all of their options and the true value of their benefits. Total compensation statements, benefits workshops, employee meetings and social networking tools are examples of communication methods that organizations can use to help ensure their benefits program is valued, understood and used by employees.

Health Reimbursement Arrangements (HRA's)

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