Surprise! Employers have no intention of simply absorbing higher costs from health care “reform”

Reuters, September 17:

If U.S. health reform efforts lead to higher costs for employers, employees may end up bearing the brunt, according to a new survey.

Employers will not absorb higher costs, choosing instead either to reduce benefits, lower salaries or cut jobs, the survey from professional services firm Towers Perrin said on Thursday.

Eighty-seven percent of employers said they were very likely or likely to cut benefits if reform leads to higher costs. Only 11 percent said they would accept lower profits.

"They simply don't have money and margins today to absorb additional healthcare costs," said Dave Osterndorf, chief health actuary at Towers Perrin.