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HR trend: Health care costs climbing and complex

In the list of 5 HR trends on the Women of HR blog one stood out: Costs Decrease and Retention Increases: Organizations will conduct compensation and benefits reviews to reduce overall health care costs and retain high performers.

You bet. It’s been over a year since President Obama’s health care reform bill was signed into law. Despite the name of the law, the Affordable Care Act (995 page summary), and the claims of those who supported the legislation that it will decrease health care costs, it is now common knowledge that American workers and businesses will see little or no change in their sky-rocketing health insurance costs. Costs will continue to climb, and the health insurance and health care landscape will be more complicated then ever before.

Over the next few years, as uncertainty reigns and thousands of pages of federal register are continually released to implement the Affordable Care Act, employers will need to work closely with benefit consultants and compensation experts to develop and maintain benefit and compensation packages that attract and retain key talent while keeping costs under control. In addition, they will be challenged to keep employees informed of the changes and engage them in wellness initiatives that will be critical to cost containment.

The Total Comp & Benefit Statement is a great tool for employers to use to communicate the value of employment to their people.