Sign in Subscribe
Health care industry

Healthcare Cost Increases Will Likely Be Passed on to Employees

Strategic Insights

— 1 min read

Chief financial officers (CFOs) at leading U.S. retailers are indicating that they will not reduce headcount in response to healthcare reform, but instead will likely pass increased healthcare costs onto employees. According to a recent study by BDO Seidman, LLP, 71 percent of CFOs do not plan to reduce headcount, while 80 percent of those who do not eliminate positions will pass on increased healthcare costs. The remaining 20 percent do not anticipate that employees will incur increased healthcare costs.

Key Takeaways:

  • 71 percent of CFOs at leading U.S. retailers do not plan to reduce headcount in response to healthcare reform.
  • 80 percent of retailers that do not eliminate positions will pass on increased healthcare costs to employees.
  • 20 percent of retailers do not anticipate that employees will incur increased healthcare costs.
  • The study found that managing healthcare costs is a significant challenge for retailers, with 63 percent of retailers that sell sustainable products noticing an increase in consumer demand for them.
  • Despite a flurry of high-profile layaway programs, 86 percent of retailers do not plan to offer layaway programs for the 2009 holiday season.

Statistics:

  • 71 percent of retailers will not reduce headcount in response to healthcare reform.
  • 80 percent of retailers will pass on increased healthcare costs to employees.
  • 20 percent of retailers do not anticipate that employees will incur increased healthcare costs.
  • 63 percent of retailers selling sustainable products notice an increase in consumer demand for them.
  • 86 percent of retailers do not plan to offer layaway programs for the 2009 holiday season.
  • 50 percent of retailers sell green products.
  • 100 chief financial officers at leading retailers were surveyed for the BDO Seidman Retail Compass Survey of CFOs.

Sources:

  • BDO Seidman, LLP, THE BDO SEIDMAN RETAIL COMPASS SURVEY OF CFOs, 2009
  • Market Measurement, Inc., BDO Seidman Retail Compass Survey of CFOs, 2009

Read more