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Impending Affordable Care Act Concerns Manufacturers

Posted 12:02 PM by

In a recent survey conducted by the National Association of Manufacturers, 82.2% of 317 manufacturers said that “rising healthcare/insurance costs” was their top concern, edging out taxes and regulations, the unpredictable political climate, and hiring decisions. While 99% of the respondents already offer health benefits to their employees, their main concerns relate to the anticipated cost increases in existing premiums. Healthcare premiums have already increased an average of 8.5% in each of the past two years, and respondents of the survey anticipate an increase of 14% in 2014. 

Over half of the manufacturers in the survey stated they are unprepared or uncertain as to how they plan to implement provisions of the Affordable Care Act when it takes effect in 2014. Just over 50% of the manufacturers expected their payrolls to hold steady, while 32.5% of the companies expected to add full-time employees and 15.9% expect to cut full-timers. One of the well known stipulations included in the law requires employers with over 50 full-time employees to provide affordable health care options, or pay a nondeductible tax penalty of $2,000 per full-time employee beyond the company’s first 30 workers. Employees are considered full-time if they work at least 30 hours per week in any given month.

For questions regarding potential impacts of the Affordable Care Act, please consult your KSM advisor.

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