ADP Research Institute(sm): 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
Healthcare Reform Measures on American Employers and Employees
ROSELAND, N.J., Feb. 4, 2013
ROSELAND, N.J., Feb. 4, 2013 /PRNewswire/ --ADP®, a leading provider of
employee healthcare benefits administration services andhuman capital
management (HCM) services, today announced the findings of an ADP Research
Institute^sm 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.
To view the multimedia assets associated with this release, please visit:
According to the 2012 Study of Large Employer Health Benefits from the ADP
o88% 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.
oBy 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
oThe 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 healthcare
The 2012 Study of Large Employer Health Benefits from ADP also shows that
employer size correlates with total premiums, irrespective of employee
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.
On February 12, 2013, ADP Vice President of Benefits Outsourcing Consulting
John Haslinger will conduct an in-depth webinar focused on Healthcare 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
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.
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 ofhuman resource, payroll,taxandbenefits
administration solutionsfrom 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 toauto, truck,
motorcycle, marine, recreational vehicle, and heavy equipment
dealersthroughout 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
SOURCE ADP, Inc.
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