Employers are nearly united in their concerns about rising health costs but are divided in how to respond to thechallenge.

A survey of 1,500 benefit decision makers, commissioned by theTransamerica Center for Health Studies and conducted by HarrisPoll, finds that 80% are concerned about the affordability ofhealth insurance, while 78% are troubled by the rise in health care expenses.

While most employers recognize the need to cut costs, the greatmajority are also keenly aware of the risks they run in trimmingbenefits. Eighty-four percent say health benefits are an important part of recruiting andretaining qualified workers, while 84% say quality benefits are akey contributor to employee satisfaction.

Only 19% of employers say they will likely change their planofferings in the next two years, while 31% say they do notanticipate making any significant changes to the benefits theyoffer. In the middle, 31% say they plan to retain their existingplans but make changes to them.

Wellness programs are now solidly mainstream. Fifty-five percentof employers report offering some type of wellness program, eventhough a separate survey of employees finds that only 46% ofworkers believe their employer offers one.

Many employers continue to express concerns about the Cadillac Tax, an excise tax on expensive health plans that wasincluded in the Affordable Care Act and was slated to go intoeffect in 2018. In response to strong opposition from businessgroups and labor unions, Congress voted last year to delay itsimplementation by two years and many observers assumed that thepolicy was ultimately dead.

And yet, 70% of employers say they are planning on makingchanges to their benefits in order to avoid getting hit with the40% excise tax. That may be because Speaker Paul Ryan has proposeda similar measure in his own health care proposal and economistsacross the political spectrum have generally agreed that exemptingbenefits from taxation drives health care costs up by encouragingemployers to compensate workers through benefits, rather thanwages.

BenefitsPro