According to Transport Capital Partners’ (TCP) Business Expectations survey for the 3rdquarter, motor carriers are “gradually coming to terms” with the Patient Protection and Affordable Care Act or ACA (a.k.a. “Obamacare”)-- and what they must do to comply with it.
Open enrollment in health-insurance exchanges begins today, October 1st, and deadlines for businesses are fast approaching, TCP pointed out.
The consultancy firm found that as implementation of the new health law kicks in, the number of motor carriers reporting the law has made no difference to their business dropped from 36% a year ago to just 8% this quarter. TCP said carriers are taking various steps in order to comply and their strategies for dealing with the resulting increased costs have shifted.
In November 2011, 43% of carriers indicated they were likely to have employees contribute more toward health costs. Today, carriers are more likely to implement wellness programs (44%) and health savings plans (30%).
And the number of carriers that anticipate opting out of providing healthcare insurance all together by using independent contractors has grown from 13% two years ago to 24% this quarter.
TCP determined that the response to the new healthcare law varies “dramatically” by business size.
Smaller carriers reported they are more likely than larger carriers to consider dropping all coverage (30% vs. 10%). They are also more likely to reduce coverage (12% vs. 4%), and to have their employees contribute more (24% vs. 15%).
According to TCP, this disparity in part reflects the fact that small employers—those with fewer than 50 employees— have a different set of options under the new law.
”Smaller carriers are at a disadvantage to find and retain drivers if they cannot compete with the health packages offered by larger carriers,” pointed out Richard Mikes, TCP partner.
TCP also found that larger carriers are more likely to have employees pay more for family coverage (48% vs. 36%) or to institute a health saving account (35% vs. 21%).
Click here to view TCP graphs.
