3 ways health care spending will affect the economy

We all know by now health reform isn’t free. Who is going to shoulder the cost? Everyone, according to these three articles.

Employer cost: Survey: 61% of employers expect cost increase from healthcare law {WSJ}

More than 60% of U.S. employers in a new survey anticipate some increase in their health benefit costs because of the federal Affordable Care Act.

The survey of 1,203 employers by the Mercer consulting firm found that 20% of those businesses expect an increase of 5% or more as new rules for workplace coverage take effect in 2014. An additional 41% of employers anticipate that costs will rise less than 5%.

Wealthy tax payers: Who’s going to pay for health reform’s taxes? {BenefitsPro}

Who gets thumped by higher taxes in President Barack Obama’s health care law? The wealthiest 2 percent of Americans will take the biggest hit, starting next year. And the pain will be shared by some who aren’t so well off — people swept up in a hodgepodge of smaller tax changes that will help finance health coverage for millions in need.

For the vast majority of people, however, the health care law won’t mean sending more money to the IRS.

Low-wage employees: Health Law Likely to Spur Retail, Restaurant Cuts {WSJ}

Employers in the retail and restaurant industries are more likely than other companies to drop their health plans or cut workers’ hours when new health-law requirements take effect in 2014, according to new data from the consulting firm Mercer.

A Wall Street Journal article last week said retail and restaurant franchisees were bracing for higher costs as part of the law, and several said they planned to change workers’ health benefits.

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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