Last week, we talked about how some businesses are considering discontinuing their healthcare plans because of the Affordable Healthcare Act (AHCA). Would this decision benefit businesses or their employees?

The companies that are saying that they are considering dropping their Employer Sponsored Healthcare Plans say that they would save money in administration costs, even if they have to pay fines. However, the AHCA will not create additional paperwork for businesses that already have insurance programs in place. In fact, for most employers and their workers, they will see little change in 2014, when the AHCA is to take effect.

Because of the grandfather clause in the AHCA, Employer Sponsored Healthcare Plans that have been in effect since at least March 23, 2010, will see little difference. If the individual works at a large firm, the effect will be even less significant than it will be for employees of small businesses.

Employees of large companies who have families will be able to insure their college age children until they are 26 years old. There will also be a cap on the amount of money they can put in their flexible spending accounts every year, but these two major changes will be to most they will see on average.

For employees of small businesses, the changes that will take effect in 2014 will be significant. Small businesses have a difficult time finding affordable insurance, and those who offer Employer Sponsored Healthcare Plans have to pass a great deal of the expense on to the employees. These companies will benefit from the AHCA.

Small companies will have a larger selection of affordable healthcare options that will benefit their employees. These healthcare options will also offer better benefits than are currently available. Employees will be able to access prevention services and access to pediatrician services and prenatal care without cost sharing.

With all of these benefits, why would a company consider dropping their coverage? Some companies believe that with the options that will be available to individuals, offering health insurance will no longer be an incentive when attracting employees. Now, many people look at benefits that are offered in addition to salary when weighing employment options. Without that benefit, how would a company encourage qualified candidates to join their company?
Another reason may be fear. Change often breeds fear as the future becomes uncertain. Once the true impact of the AHCA is seen, many businesses will adjust and see that the changes aren’t as extreme as they once thought they were. If a company is uncertain about their current healthcare plan and if they should consider dropping coverage should consult a human resource professional with experience in healthcare benefits.