ADP's 2012 Study of Large Employer Health Benefits

The Affordable Care Act (ACA) will significantly impact how employers handle employee benefits. The way employers respond to these reforms will affect the extent of the impact on their companies. Informed employers can begin taking action now to manage the effect of the ACA's shared responsibility requirements on their financial and human capital resources. The intent of this paper is to provide data and insights – particularly relevant to those employers with more than 1,000 employees.

ADP's 2012 Study of Large Employer Health Benefits indicates that most of the impact will revolve around the part-time workforce. The data from this study shows that, in 2012, 23% of all employee positions were classified as part-time, but only 15% of these were eligible for benefits. Roughly two-thirds of the part-time workforce was classified as single, versus less than 50% of full-time employees. When eligible part-time employees were offered health benefits, only 53% elected coverage versus 77% of full-time employees. These and other factors are indicators of whether the employer may be subject to potential penalties once the ACA's shared responsibility requirements take effect and how much exposure the employer might have.

Because of this, composition of the workforce may shift to accommodate the influences of Health Care Reform. Much of the workforce is full-time and already participates in employer-provided benefits. However, the ACA will require employers to extend health coverage to more part-time employees and employers need to carefully consider the best approach for their organization.