bswift Special Report Reveals Financial Impact of
Key Health Reform Provisions on Mid-Sized &
Dependent Eligibility and Affordability Provisions of PPACA May Prove More Costly than Original
Impact Varies Dramatically Among Employers
July 16, 2010 08:03 AM Eastern Daylight Time
CHICAGO--(EON: Enhanced Online News)--A new study published by bswift, a leader in software and services
for employee benefits administration, shows that two key provisions of the new Patient Protection and Affordable
Care Act (PPACA) − “Dependent Eligibility” and “Affordability” − will likely result in much higher health care costs
for employers than previously estimated by Health and Human Services (HHS) and other industry consultants.
The bswift Special Report on the Impact of Health Reform on Employers analyzed actual 2010 benefits
premium, contribution and dependent data from more than 5,000 bswift client organizations. Of those, 242 met the
selection criteria and were used in the study. The sample includes mid-sized and large employers with 50 to 15,000
employees representing a variety of industries including retail, manufacturing and professional services.
“Employers need actual company-specific data rather than survey-based estimates to truly understand the impact of
the new PPACA legislation,” said bswift CEO Rich Gallun.
“The bswift Special Report highlights the dramatic differences in impact of PPACA among employers. For some,
the impact is negligible. For many others, PPACA may increase costs substantially for 2011 and may also require a
complete overhaul of the organization’s health strategies in the next three years,” he added.
Impact of “Dependent Eligibility” Provision
bswift analyzed the likely impact of the “Dependent Eligibility” provision, which requires organizations to cover
employees’ children up to age 26, whether or not they are full-time students, married, or employed. HHS had
originally estimated the impact of this provision to be 0.7 percent of total he