Some small credit unions are deciding not to offer group health insurance to employees, according to the 2014-2015 CU Staff Benefits Report released by CUNA Thursday.
"Since 2012, the number of credit unions offering group health insurance has dropped 6%, which is mostly attributed to those with between $5 million and $20 million in assets," CUNA said.
According to the report, credit unions with fewer than $100 million in assets were more likely to decrease various staff benefits.
"Smaller credit unions are more challenged to meet higher costs of health care and, as such, make up a significant proportion of the credit unions that have dropped group health insurance," Jon Haller, CUNA director of corporate and market research, said.
In 2013, health care benefits costs per employee at credit unions increased 11% from 2012 levels, according to CUNA.
"A third of credit unions adjusted employee deductibles, co-pays or employees' monthly premium contributions to mitigate those expenses as they entered 2014," CUNA reported.
Under the Affordable Care Act, signed into law by President Obama in 2010, health insurance plans have to meet certain benefit requirements, which have increased costs for some employers.
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