The Future of Corporate Healthcare and Businesses

Did you know that reports show that health spending in the U.S. will increase more than six percent in 2014? Well, a recent article from Insurance Journal reveals what employees for large companies can anticipate when it comes to new company coverage.While large companies have normally been self-insured, taking on risks of their employee’s health costs, one-third of U.S. employers are planning on turning to private healthcare companies to begin providing insurance for employees. This change in coverage could have some employees worried because the government’s fine for not providing insurance is much less for a company than providing insurance.Luckily, large companies recognize the fact that not providing health insurance for employees would cause a bad reputation and the likelihood of losing a good workforce. Through private insurance, employees could potentially have several different healthcare options to choose from, and the insurer will take on the risk.A few large companies, such as Walgreens Co. and Sears Holding Corp., have already changed over to a private insurance agency and more companies are expected to follow.The good news is that approximately 95 percent of U.S. companies say they will continue to provide healthcare for employees within the next three to five years. Unfortunately, part-time employees may not get the benefits they once had since the legislation does not require employers to cover them.If you are a business owner, contact Risk & Insurance Consultants about our health and commercial insurance options in Atlanta. Has your company changed over to a private insurance agency?