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Manufacturers Face Rising Health Care Costs Amid ACA Provisions

Strategic Insights

— 1 min read

As manufacturers continue to grapple with health care costs, industry leaders are seeking flexible options to reduce expenses. Despite their frustrations with pricing pressures, a significant majority of employees in the sector remain eligible for and participate in company health benefits. manufacturers' focus on providing health care coverage is driven by the need to attract and retain talent, as well as maintain a healthy workforce.

Key Takeaways:

  • Manufacturers see the benefits of offering health care options to their employees, with 92 percent of workers in the sector eligible to participate in their company's health benefits, the highest of any industry (Kaiser Family Foundation).
  • Of those individuals who were eligible, the take-up rate was 83 percent, highlighting the importance of health care coverage for employee recruitment and retention.
  • Manufacturers are not abandoning health care coverage, with only 1.6 percent planning to stop providing coverage in response to increasing costs (National Association of Manufacturers).
  • To mitigate costs, manufacturers have switched plans, increased copays and deductibles, and raised the share of premiums paid by employees.
  • Manufacturers prioritize lowering health care costs, increasing the number of available options, and ensuring employees are well-informed when making health care decisions.

Statistics:

  • 92 percent of workers in the manufacturing sector are eligible to participate in their company's health benefits (Kaiser Family Foundation).
  • 83 percent of employees who were eligible participate in their company's health benefits (Kaiser Family Foundation).
  • 1.6 percent of manufacturers plan to stop providing health care coverage in response to increasing costs (National Association of Manufacturers).
  • 92 percent of workers in the manufacturing sector are eligible for health benefits, the highest of any industry (Kaiser Family Foundation).

Sources:

  • Kaiser Family Foundation
  • National Association of Manufacturers (NAM)

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