What impact is the rising cost of healthcare having on companies’ delivery of those plans?
DS. It is bringing cost shifts to workers that lead to lower savings. More workers are going without health insurance because they do not have the upfront cash to pay the premium. It is also bringing the most severe issues to those employers that still have retirees with health insurance as it adds a cost that competitors without retirees with health insurance don’t have to deal with. In order to cover the cost of healthcare, there is less money available for raises, retirement plans, etc. In short, health costs are driving most employee benefits and compensation – even if not in a well planned way. HRM. Are any other issues likely to rear up in the coming years? DS. The biggest change will come as the Government Accounting Standards Board and Financial Accounting Standards Board further tighten the calculations and reporting of costs and liabilities for retiree health benefits and pensions. This will cause more and more employers to move away from those benefits, and will improve thei
