SAS Institute plans to double its legal and consultant expenses in 2011, as the Cary software company tries to sort through changes coming under the federal health overhaul.
SAS is one of many companies dealing with the administrative headaches, and higher costs, brought by the reform law, the Wall Street Journal reports.
"There's administrative burden just to try and understand the 2,400 pages of the document," SAS vice president of human resources Jenn Mann told the newspaper. She declined to comment on how much SAS spends on health coverage or how much more it will pay in legal expenses.
SAS also is taking steps now to prepare for future changes under the overhaul law. For example, a tax starts in 2018 for employers with health plans whose costs exceed certain levels. If SAS doesn't adjust its plans, the tax will cost the company about $20 million, Mann said.
So the company is eliminating its higher-cost indemnity plan, is doubling copays to $20 from $10, and is considering passing on other costs to its employees.
SAS employs about 11,400 people worldwide, including more than 4,000 at its massive Cary headquarters campus. Revenue at the private company rose to $2.31 billion last year, and is expected to increase again this year.
The Wall Street Journal notes that a recent survey showed that 31 percent of executives are most concerned about the cost of compliance with the new law. Bookstore chain Borders Group has increased its health-care related consultant expenses about 20 percent to help it understand the law's implications.
Read the full Wall Street Journal story here.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
So maybe Jim Goodnight will rethink his Democrat Support
Mon, 12/13/2010 - 15:59 — mike27513Well, 2400 pages of regulations and mandatory coverage of 35+ Million uninsured and illegals by taxpayers might drive up costs?
Maybe Jim Goodnight, Founder and owner of SAS will rethink his blind allegiance to the NC Democrat machine [Goodnight hosted fundraiser for now ousted Democrat NC House speaker Hackney at Goodnight's 50+ acre Estate ].
WHOA, HOLD ON A MINUTE, I THOUGHT OBAMA SAID THAT OBAMACARE
Mon, 12/13/2010 - 10:27 — PlatowasrightWould save us money, not cost us more money. Now we have all these large employers telling their employees that Obamacare is going to raise their cost of health care insurance, we have Blue Cross Blue Shield of NC telling us that Obamacare will raise the cost of small group coverage and individual coverage by 30% over the next two years?!?!?
Looks like the liberals in DC lied to us again.
NO MORE LIBERALS IN 2012. THROW THE FOOLS OUT OF OFFICE.