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Chief Financial Officers: New Health Law Bad for Employees and Businesses

May 05, 2010

As the old saying goes: when it rains, it pours.  And, the nation’s chief financial officers are suggesting the new health care law is all wet when it comes to the prospects for their businesses and employees.  A survey conducted by the City University of New York for the Financial Executives Research Foundation found that three-quarters of Chief Financial Officers (CFOs) believe the Democrats health overhaul will be “negative both for Americans (73 percent) and for their own companies (75 percent).”  With the national unemployment rate seemingly stuck at nearly 10 percent, other troubling news for American workers include:

  • CFOs expect costs to increase more than 8% over the next twelve months as the direct result of the health overhaul;
  • 62% of CFOs say they will have to increase employee co-pays;
  • 48% of CFOs believe they will have to reduce the quality of the health care package they offer employees; and
  • 46% of CFOs say they will have to reduce employee benefits.