Morrisville tech firm sees little impact from new health law
Posted August 22, 2013
Morrisville, N.C. — Although UPS is cutting health benefits to control costs in advance of the Affordable Care Act's implementation, at least one Triangle firm says it expects little impact from the new federal health care law.
United Parcel Service Inc. will end health coverage for the spouses of about 15,000 nonunion employees next year, saying they can get the coverage from their own employers. The company cited a study by a benefits consultant who estimated that about 35 percent of U.S. companies will do likewise under the ACA.
Morrisville-based Channel Advisor will not be among those 35 percent, President and Chief Operating Officer David Spitz said Thursday.
The company, which helps firms with their e-commerce efforts, covers 100 percent of the health insurance premiums for its 500 employees and 95 percent for their spouses and children.
"We’ve always invested a lot in our employees. We continue to do that," Spitz said. "The Affordable Care Act is not something I would expect to impact our practices."
The law originally required employers with 50 or more full-time workers to provide health benefits by 2014, but the Obama administration delayed that to 2015 after business leaders complained.
Channel Advisor spends millions of dollars each year on employee health coverage, Spitz said, but the company views it as an investment rather than an expense.
"For employees to have the sense of stability and comfort that Channel Advisor is helping to cover that cost in a pretty substantial way is attractive for recruiting," he said. "That (also) allows them to focus on doing a great job for customers and their career."
The company provides nutrition and wellness programs to help keep health costs in check, he said.
"It’s an evolving statute," he said of the ACA. "I’m sure, over time, it will continue to evolve, and we'll keep an eye on it, but as it stands right now, we don’t see a big impact from it."