| Last week, the US Supreme Court heard arguments over the constitutionality of the Affordable Care Act (ACA). Regardless of the outcome, employers will face a dilemma over whether to continue offering health benefits and managing workforce health or drop coverage and point employees to the individual insurance market. This Quick Pic builds on IBI's latest research on how CFOs view the link between health and business,1 and analyzes the six factors2 most frequently ranked 1, 2 or 3 as employers decide whether to continue workforce medical coverage. |
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Human capital considerations comprise four of the top six factors. By wide margins, CFOs view medical coverage as necessary to attract, retain and satisfy a skilled workforce. Medical coverage is seen as a human capital management necessity, rather than a cost to be minimized. Third is a consideration of where they could spend any savings that result from dropping medical coverage. The next two factors relate to medical coverage as a tool to improve health and productivity, an opportunity that would be lost if coverage shifted to individuals. The cost of the fine is a factor, but of less importance.
The strategic value of medical coverage. As IBI reported previously, 75% of respondents agree or strongly agree that comprehensive healthcare coverage is important to company financial strategy. These responses to the ACA are consistent with that finding and reinforce the priority CFOs place on managing and maintaining a skilled, satisfied workforce. This group appears dedicated to viewing medical coverage as a competitive and strategic human capital advantage they are loath to forfeit.
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