Monday, October 28, 2013
Monday, October 7, 2013
Unintended Consequences of The ACA
While the folks in Washington place chicken with the ACA, it
appears parts of the act may stay no matter what changes are implemented; The
ability of people to buy individual and family plans that grant full coverage
despite pre-existing conditions seems likely to be one part that will stay.
What does this mean for employers? If you use your group
health plan as the major incentive for people to work at and stay with your
organization, you may need to rethink your engagement and employee satisfaction strategy.
Our prediction is that voluntary turnover will increase as a
result of the new system. Group health plans will not be the golden handcuffs
they once were as the ACA will most likely serve as life long COBRA. With
subsidies set at fairly high levels, the risk to go it alone through
self-employment may be perceived as lower.
As we have noted elsewhere on this blog, quantitative
incentives overall are losing their ability to create employee loyalty in our
knowledge based economy. With the ACA exchanges
and insurance providers already providing pricing comparisons and the coverage
only three months way from implementation, employers may lose the hybrid
qualitative/quantitative incentive of group health plans.
The answer; Create a purpose based organizational culture
with more opportunities for professional development and continuing education. We have posted evidence elsewhere on this BLOG that financial results
improve when organizations take this approach. With the ACA in place, we envision
culture playing an even more important role in creating loyal and highly productive
employees.
www.klgconsultants.com
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