Vermont businesses seem to be taking a deliberate approach to the state's new health insurance marketplace, according to a local CPA firm. The Certified Public Accounting firm of Davis & Hodgdon Associates CPAs located in Williston, Vermont, conducted a survey earlier this month regarding the impact of Vermont’s new healthcare exchange system on Vermont-based businesses. The survey was completed by over 130 small- to medium-sized businesses located throughout the state and primarily in Chittenden (44%), Washington (10%), and Windsor (10%) counties, but also in Windham (8%) and Rutland (8%).’ Most of those surveyed responded within four hours of the survey launch, demonstrating the urgency of this topic among many Vermont businesses.’
54% of businesses surveyed will offer health plan to employees in 2014 compared to 81% in 2013
Slightly less than half of businesses that will NOT offer 2014 health coverage will provide alternatives to employees including increased compensation
New exchange system proving to be slightly costly to businesses in terms of time and money
Respondents were asked to provide detailed information about their employee health insurance benefit plans for the current year of 2013 as well as their intent for the new health plan year 2014.’ They were also asked to react to and report on their initial experience with Vermont Health Connect, the new Health Insurance Exchange.’ Respondents were also asked to gauge the new system’s effect on the cost of daily business operations and whether their businesses are taking advantage of the healthcare tax credits.’
Vermont industries surveyed included professional and technical, manufacturing, retail, finance and insurance, health care and social assistance, construction, hotel and restaurant, education services, agriculture, information, and wholesale trade.’
For the current year, 81% of businesses surveyed indicated that they provide health coverage to employees on some level.’ 39% of which offer full single or family coverage, 21% offer full single coverage only, while 8% provide a flat dollar amount in excess of $300 per month, and 4% provide a flat dollar amount less than $300 per month.’ 28% of those businesses providing health coverage on some level in 2013 have provided another option to their employees.’
When the same respondents were asked about intent for the new health plan year 2014, only 54% indicated that they will offer health coverage to their employees.’ Of those businesses that will offer health plans for 2014, 44% will provide a flat dollar amount in excess of $300 per month and 12% will provide less than $300 per month.’ 43% of respondents that will offer plans in 2014 indicated that they will provide an alternative to their employees.’
Of those businesses surveyed, 34% indicated that they will NOT offer health coverage to employees for the new health plan year 2014.’ As an alternative to health coverage 24% of those that will not offer a 2014 health plan will increase employee compensation and 22% will offer another alternative.’ 2% of those not offering a 2014 health plan indicated that they will begin or increase contributions to employee Health Savings Accounts (HSAs) while’ 52% stated that they will offer no alternative.’ ‘
When asked to rate the feedback and reaction from their staff in regards to Vermont Health Connect, the weighted average response fell between ‘unfavorable’ reactions to that of ‘ambivalence’.’ Based on their own initial experience with Vermont Health Connect, business respondents reactions fell between ‘unfavorable’ and ‘undecided’.’
Respondents were then asked to gauge the effect of using the new exchange system on their general daily business operations, in regards to overall time and money spent.’ The general consensus reaction fell between ‘slightly costly’ and ‘costly’.’ In addition, 60% of those who responded have consulted with a broker, while others used consultants including Human Resources Specialists, Accountants, Attorneys, Navigators and the Vermont State Help Line.’
What does Davis & Hodgdon’s managing partner, John Davis think it means?’ ‘I sense a great deal of trepidation among businesses regarding how best to respond to the new exchange system.’ Survey results show a significant drop in businesses that are offering health plans or alternatives to employees in 2014, which may indicate that many are taking a ‘wait and see’ approach prior to committing to alternatives to the coverage they once offered their employees.’’ Davis continued, ‘It’s also interesting that only 21% of businesses surveyed are taking advantage of the health care tax credits, which may indicate that the benefits of this credit have been overstated.’’ ‘
‘
Overall Survey Results:
‘
Davis & Hodgdon Associates Healthcare Exchange Survey
‘
‘
How many staff does your business currently employ?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Less than 50
‘
‘
120
91.60%
‘
More than 50
‘
‘
11
8.30%
‘
No Responses
‘
‘
0
0.00%
‘
‘
Totals
131
100%
‘
‘
‘
In regard to health insurance, what did your business provide for employees in the current year 2013?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Business did not offer health coverage
‘
‘
24
18.30%
‘
Business provided health coverage on some level (select and go to question #3)
‘
‘
106
80.90%
‘
No Responses
‘
‘
1
1%
‘
‘
Totals
131
100%
‘
‘
‘
If you did offer health coverage in the current year 2013, which of the following options did you provide?’
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Full single coverage only
‘
‘
23
17.50%
‘
Full single or family coverage
‘
‘
41
31.20%
‘
Flat dollar amount in excess of $300 per month
‘
‘
10
7.60%
‘
Flat dollar amount less than $300 per month
‘
‘
6
4.50%
‘
Other
‘
‘
30
22.90%
‘
No Responses
‘
‘
21
16.00%
‘
‘
Totals
131
100%
‘
‘
‘
What is your business' intent for the new health plan year 2014?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Business will NOT offer health coverage to employees (Select and go to question #5)
‘
‘
45
34.30%
‘
Business will offer health coverage to employees (Select and go to question #6)
‘
‘
71
54.10%
‘
Business will change the premium for the lowest-cost plan available (select and go to question #7)
‘
‘
1
1%
‘
Other
‘
‘
12
9.10%
‘
No Responses
‘
‘
2
1.50%
‘
‘
Totals
131
100%
‘
‘
‘
If your business will NOT offer an employer-sponsored plan in 2014 which of the following alternatives will you provide to your staff?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Increase compensation
‘
‘
12
9.10%
‘
Begin/increase contribution to employee Health Savings Account (HSA)
‘
‘
1
1%
‘
No alternative
‘
‘
26
19.80%
‘
Other
‘
‘
11
8.30%
‘
No Responses
‘
‘
81
61.80%
‘
‘
Totals
131
100%
‘
‘
‘
If your business will offer an employer-sponsored plan in 2014, which of the following options will you provide?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Flat dollar amount in excess of $300 per month
‘
‘
36
27.40%
‘
Flat dollar amount less than $300 per month
‘
‘
10
7.60%
‘
Other
‘
‘
35
26.70%
‘
No Responses
‘
‘
50
38.10%
‘
‘
Totals
131
100%
‘
‘
‘
How many seminars/webinars related to Vermont Health Connect did you attend to prepare for the upcoming changes?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
None
‘
‘
49
37.40%
‘
4-Jan
‘
‘
73
55.70%
‘
5+
‘
‘
9
6.80%
‘
No Responses
‘
‘
0
0.00%
‘
‘
Totals
131
100%
‘
‘
‘
How would you rate the reaction/feedback from your staff in regards to VT Health Connect?
‘
‘ 1’ = Unfavorable ,’ 2’ = Ambivalent ,’ 3’ = Favorable
‘
1
2
3
Number of
Rating
‘
‘
‘
‘
‘ ‘ Responses
Score*
‘
‘
‘
‘
117
1.7
‘
*The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.
‘
‘ Show Details
‘
‘
‘
Based on your intitial experience with Vermont Health Connect, how would you rate their online system?
‘
‘ 1’ = Unfavorable ,’ 2’ = Undecided ,’ 3’ = Favorable
‘
1
2
3
Number of
Rating
‘
‘
‘
‘
‘ ‘ Responses
Score*
‘
‘
‘
‘
118
1.5
‘
*The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.
‘
‘ Show Details
‘
‘
How would you rate the affect of being required’ to use the exchange on your general daily business operations? (in regards to overall’ time and money spent)
‘ 1’ = No affect ,’ 2’ = Slightly costly ,’ 3’ = Costly ,’ 4’ = Very costly
1
2
3
4
Number of
Rating
‘
‘
‘
‘
‘ ‘ Responses
Score*
‘
‘
‘
‘
119
2.5
*The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of total responses.
‘ Show Details
‘
‘
With whom have you consulted with regarding your decision on whether to sponsor an insurance plan?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Broker
‘
‘
74
59.60%
‘
Consultant (Accountant, HR Specialist, Attorney, etc...)
‘
‘
39
31.40%
‘
Navigator
‘
‘
28
22.50%
‘
Vermont State Help Line
‘
‘
27
21.70%
‘
Other
‘
‘
28
22.50%
‘
‘
Totals
124
100%
‘
‘
‘
Does your business take advantage of health care tax credits?
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Yes
‘
‘
20
15.20%
‘
No
‘
‘
79
60.30%
‘
Don't know
‘
‘
30
22.90%
‘
No Responses
‘
‘
2
1.50%
‘
‘
Totals
131
100%
‘
‘
‘
Please indicate your business industry.
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Agriculture
‘
‘
1
1%
‘
Construction
‘
‘
12
9.10%
‘
Educational Services
‘
‘
3
2.20%
‘
Finance & Insurance
‘
‘
10
7.60%
‘
Health Care & Social Assistance
‘
‘
9
6.80%
‘
Hotel & Restaurant
‘
‘
3
2.20%
‘
Information
‘
‘
1
1%
‘
Manufacturing
‘
‘
14
10.60%
‘
Professional, Technical
‘
‘
35
26.70%
‘
Retail trade
‘
‘
13
9.90%
‘
Transportation & Warehousing
‘
‘
0
0.00%
‘
Utilities
‘
‘
0
0.00%
‘
Wholesale Trade
‘
‘
5
3.80%
‘
Other
‘
‘
24
18.30%
‘
No Responses
‘
‘
1
1%
‘
‘
Totals
131
100%
‘
‘
‘
County of Headquarters:
‘
Answer
0%
100%
Number of
Response
‘
‘
‘
Responses
Ratio
‘
Addison
‘
‘
2
1.50%
‘
Bennington
‘
‘
4
3.00%
‘
Caledonia
‘
‘
3
2.20%
‘
Chittenden
‘
‘
57
43.50%
‘
Essex
‘
‘
0
0.00%
‘
Franklin
‘
‘
3
2.20%
‘
Lamoille
‘
‘
5
3.80%
‘
Orange
‘
‘
1
1%
‘
Orleans
‘
‘
6
4.50%
‘
Rutland
‘
‘
11
8.30%
‘
Washington
‘
‘
13
9.90%
‘
Windham
‘
‘
11
8.30%
‘
Windsor
‘
‘
13
9.90%
‘
No Responses
‘
‘
2
1.50%
‘
‘
Totals
131
100%
‘
For complete survey results, go to’ http://survey.constantcontact.com/survey/a07e8ciqlkwhmrt9iyi/results.
Williston, VT’ November 18, 2013’ ‘ Davis & Hodgdon Associates CPAs
‘