September 11, 2015

Mercer Study Shows Employers Won’t Cut Onsite Clinics In Spite of “Cadillac Tax”

MercerIn a recent article in Forbes by Bruce Japsen, reference was made to a study of more than 100 large employers (by Mercer) showing that in spite of the fear of the “Cadillac Tax” on benefit plans costing employers at least $10,200/year for a single employee (or $27,500 annually for family benefits), those same employers will not cut onsite clinics.  Why?  Because, according to the survey and as reported by Mr. Japsen, the low cost of the onsite clinics (as a percent of total healthcare spend) and the tremendous positive impact that they have on controlling total healthcare costs, mean that the onsite clinic will remain in their budgets for sometime to come.

This study also suggests that the industry is strong and that on-site clinics continue to be an important part of the HR offering for many large firms — most importantly, for firms that are organized around their employee base as an important part of their success.

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