ADP Research Institute®: Just Over Half of Eligible Part-Time Workers at Large Companies Elect Health Care Coverage

ADP Research Institutesm: Just Over Half of Eligible Part-Time Workers at Large Companies Elect Health Care Coverage

First-of-its-Kind Study of Large Companies Highlights Potential Impact of Health Care Reform Measures on American Employers and Employees

ROSELAND, N.J. February 4, 2013ADP ®, a leading provider  of employee healthcare benefits administration services and  human capital management (HCM) services, today announced the findings of an ADP Research Institutesm study based on actual, real-world data for approximately one million employees and more than two million covered lives. The ADP 2012 Study of Large Employer Health Benefits found that part-time workers eligible for health care benefits at large companies in the United States elect coverage at a significantly lower rate than full-time employees.

According to the 2012 Study of Large Employer Health Benefits from the ADP Research Institute:

  • 88% of the full-time workforce is eligible for benefits. 77% of the eligible full-time employees actually selected health coverage. The result is that 68% of the total full-time workforce is covered by their employer’s health plan.
  • By contrast, the part-time workforce makes up 23% of the total workforce. Only 15% of these part-time employees are eligible for benefits with slightly more than half (53%) choosing to participate.  The result is that 8% of the part-time workforce participates in their employer’s health coverage.
  • The average employer within the ADP Benefits Study contributed $7,225 per annum in health premiums for each employee who enrolled in the employer’s group health plans for benefit year 2012.

To view a video highlighting the key findings of the study, as well as two infographics, click here or visit http://www.adp.com/healthbenefitsbenchmarks.

The gap between part-time and full-time insured looms large, as the shared responsibility provision of the Affordable Care Act (ACA) requires employees credited with service equal to at least 30 hours per week or 130 hours per month, must be automatically eligible for employer–sponsored health plans.  Potentially, this provision could create a spike in part-time employees eligible for benefits starting in 2014.

“Unlike survey-based studies, the data in our study is derived from the actual, aggregated and anonymous benefits data and enrollment administration activity of large ADP clients representing multiple industries across all 50 U.S. states,” said Tim Clifford, president of ADP Benefits Administration Services.  “By providing key statistics on both full and part-time workforce composition, along with current health coverage eligibility and participation rates, we are helping our clients and other large employers to learn more about the challenges facing large organizations in the new era of health care reform.”

The 2012 Study of Large Employer Health Benefits from ADP also shows that employer size correlates with total premiums, irrespective of employee contribution levels.

Despite wide disparities in total premium costs on an employer-by-employer basis, very large employers (more than 5,000 employees) as a group pay 14% less for health insurance than employers with smaller populations (1,000-2,499 employees.) The benefits of these lower premium costs are shared equally by employer and employee.

To request a free copy of the full ADP 2012 Study of Large Employer Health Benefits, please visit http://www.adp.com/healthbenefitsbenchmarks.

Upcoming Webinar
On February 12, 2013, ADP Vice President of Benefits Outsourcing Consulting John Haslinger will conduct an in-depth webinar focused on Health Care Reform to provide employers with valuable insights regarding the Affordable Care Act’s key provisions, deadlines and direct impact. Entitled: Health Care Reform: Strategies to Help Control Costs, Mitigate Risk, & Decrease Penalties, the webcast will be available at 11:00 a.m. ET and 3:00 p.m. ET on Tuesday, February 12.  To attend, please visit either www.adp.com/HCRWebcastFeb12-11am  or www.adp.com/HCRWebcastFeb12-3pm.

About the ADP 2012 Study of Large Employer Health Benefits
ADP offers a comprehensive health and welfare benefits solution among its broad spectrum of available products and services.  Leveraging actual, anonymous and aggregated information from our clients allows us to draw insights into employee behavior with respect to benefits participation, demographics, and premiums paid by employees and employers.

This study is based on 2012 employee level data from a subset of ADP’s health and welfare benefits clients of approximately 300 U.S.-based organizations.   All states and major industries are represented, as well gender, age, and marital status.  Each of the companies in the study employs 1,000 or more employees, including both full-time and part-time workers.   Due to the small data set population of union employees, only non-union employees are considered in this analysis.

About the ADP Research Institute
The ADP Research Institute provides insights to leaders in both the private and public sectors around issues in human capital management, employment trends, and workforce strategy.

About ADP
ADP, Inc. (NASDAQ: ADP), with more than $10 billion in revenues and approximately 600,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payrolltax and benefits administration solutions from a single source. ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.

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Contact:
Jim Larkin
ADP
(973) 407-9714
jim.larkin@adp.com