IWLA Treasurer Mark DeFabis, president & CEO of Integrated Distribution Services, Inc., will testify Sept. 4 on IWLA’s behalf before the U.S. House of Representatives Subcommittee on Health, Employment, Labor, and Pensions. Subcommittee Chairman Phil Roe (R-Tenn.) called the hearing entitled “The Effects of the President’s Health Care Law of Indiana’s Classrooms and Workplaces,” to examine the employer’s struggles with the additional costs of covering employees health care and how businesses are responding.
The hearing is related to an August 2014 Empire State Manufacturing Survey and Business Leaders Survey published by the Federal Reserve Bank of New York that asked business leaders about the U.S. Affordable Care Act (ACA). Here are some findings:
- The median manufacturing service firm reported a 10 percent increase in health coverage costs in 2014.
- Both manufacturing and service firms predicted an expected 10 percent increase in 2015.
- Those who reported planned adjustments in health plans next year reported those to be higher deductibles, increased co-pays, higher out-of-picket maximums, and increased employee contributions to the premium.
- About 20 percent of respondents reported a reduction in the number of workers and/or raising the share of part-time workers.
- 36 percent of manufacturers said they were hiking prices in response to the effects of the ACA.
Stay tuned for more updates on this testimony.