The Affordable Care Act (ACA) had a huge impact on recruiting. Businesses with more than 50 employees, for example, were required to offer employees health insurance once the law was passed. This led many firms to reduce staffing levels or outsource work to contractors in order to avoid paying for group insurance.
But with the new Trump administration, it is likely that the ACA will likely be modified or repealed. So what does this mean for employers and how will this affect their business and recruiting?
Here are a few things organizations should be aware of:
Greater Demand for Insurance Coverage
Data from the Centers for Disease Control shows that the number of Americans without health insurance declined by 22 million between 2013 and 2016. If the ACA is repealed, a significant number of those who are newly insured may find themselves without coverage. Additionally, workers who were once able to consider jobs without health insurance (knowing they could still buy a plan on an ACA exchange) will no longer have this flexibility. Younger workers, who were allowed to stay on their parents’ plan until the age of 26, may no longer have this option.
As a result, companies offering some form of coverage will become more attractive to workers who can no longer purchase government-subsidized plans on state or federal marketplaces. This, in turn, will create a greater recruiting edge for companies that are able to offer more generous health benefits to prospective candidates.
Organizations No Longer Restricted by Mandated Coverage
Under the ACA, larger firms were required to provide health insurance to their employees. Should the law be repealed, companies with more than 50 employees would gain the flexibility to drop or reduce their group coverage plans.
Although this may provide a significant financial benefit, it could also make these companies less attractive to top talent. This will particularly challenging for mid-size firms.
Learning New Policy Rules
The introduction of the ACA created considerable challenges for HR staff in terms of compliance. Recruiters were also tasked with explaining the impact of these changes to prospective hires. With a repeal of ACA looming, an entirely new set of rules and regulations will need to be addressed and communicated. HR and recruiting staff will need to work together to explain these changes and how they will affect workers.
The Bottom Line
The end of the ACA promises to present serious challenges for businesses and recruiters. By stressing coordination between these roles and clear communication with employees and prospective hires, companies can navigate these changes with minimal complications.
Contact us today at Duffy Group, Inc., to learn more about our expertise in healthcare sourcing.