Press Release
Vast Majority of Employers Expect Health Care Reform to Increase
Costs, Watson Wyatt Poll Finds
Majority Also Believe Reform Would Weaken Employer
Role
WASHINGTON, D.C., September 24, 2009 — A vast majority of
employers anticipate that, if enacted, health care reform will lead
to higher health care costs and weaken their role in providing
coverage to workers, according to a new poll by Watson Wyatt, a
leading global consulting firm.
The Watson Wyatt poll of 160 employers conducted in mid-September
found that 73 percent believe health care costs will increase if
health care reform legislation is enacted. Even more (86 percent)
think the health care proposals being considered would weaken the
role employer-sponsored plans play in providing health care
coverage.
gBoth Congress and the White House have said repeatedly that
health care reform should build on the employer-sponsored system,h
said Ted Nussbaum, North America director of group and health care
consulting at Watson Wyatt. gHowever, most employers are
apprehensive that the outcome will be quite different.h
The poll also found little employer support for proposals that
would tax benefits or mandate employer coverage: Fewer than three in
10 (29 percent) would support a tax on high-income employees with
high-cost plans, while fewer than one in five (19 percent) would
support a tax on insurers of high-cost plans. An even smaller
percentage — 11 percent — would support taxing employer
contributions to health care as income.
On expanding access, the poll found that only 10 percent of
respondents would support an employer mandate, while half (50
percent) would support an individual mandate. Ten percent would
support both, and 30 percent would not support either.
gEscalating health costs have been top of mind for employers for
years now, but the reform debate has pushed this issue to a critical
point,h said Nussbaum. gWhile the national debate centers on options
for expanding coverage and ways to generate revenue to fund reform,
employers are concerned that health care costs will rise even higher
as a result of the new legislation.h
For further information, please contact:
Ed Emerman
609.275.5162
eemerman@eaglepr.com
Steve Arnoff
703.258.7634
steven.arnoff@watsonwyatt.com
About Watson Wyatt
Watson Wyatt (NYSE,
NASDAQ: WW) is the trusted business partner to the worldfs leading
organizations on people and financial issues. The firmfs global
services include: managing the cost and effectiveness of employee
benefit programs; developing attraction, retention and reward
strategies; advising pension plan sponsors and other institutions on
optimal investment strategies; providing strategic and financial
advice to insurance and financial services companies; and delivering
related technology, outsourcing and data services. Watson Wyatt has
7,700 associates in 33 countries and is located on the Web at www.watsonwyatt.com.