Payroll giant ADP benefits paid to them in 2016 Annual Health trends Report which deals with the comparative analysis and trends for larger organizations. ADP sampled anonymous employees of 300 large companies to identify major trends in health benefits in order to determine the effects of "the economy, the demographics of the workforce and the Affordable Care Act" on insurance sponsored by employers. Here are some of their findings
eligibility of the employee on the rise -. Benefits Stable
Because the ACA defines a full-time worker as someone who works an average of 30 hours per week, speculation in advance of the launch has left employees nervous that their companies could choose to reduce hours rather than allowing them to be eligible for health benefits. The ADP report showed that it was largely unnecessary anxiety. The number of employees eligible for health benefits sponsored by an employer has actually increased since 2014.
low participation among employees 26 and Under
It seems that workers take full advantage of the cover depends extent described in the ACA, which allows them to keep children on their plans until age 26. Only 44 percent of eligible workers at the age of 26 years enrolled in their health benefits sponsored by employer, a decrease of 1.7 percent over the two years study period.
Increases premium Differ Across Industries
One of the most surprising pieces of information in the ADP report is that the average increase in the cost of health benefits varies by industry. ADP covered five different industries for the purpose of this study: 1) Finance and Insurance; 2) Manufacturing; 3) Retail Trade; 4) Professional Services; and 5) Health care and social assistance.
Although each of the studied industries experienced increases of costs of health benefits, health care and social assistance incurred the largest increase at 10.2 percent. Coming in second was financial and insurance, and retail trade, professional services, and finally, manufacturing with only an increase of 2.1 percent.
Conclusion
Trend Report Based on recent ADP annual health benefits for large organizations, insurance sponsored by employers remains stable with eligibility of employee on the rise. It also appears that if workers under 26 years benefit from the extended dependent clause of coverage remaining on the insurance plans of their parents.
Do the findings of the ADP rings true in your organization? Let us know in the comments below!
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