Research findings by Avalere Health show the market for employer-sponsored health insurance will remain relatively stable after certain provisions under the Affordable Care Act go into effect in 2014.
One particular ACA provision of interest to employers is the offering of subsidized health insurance through state health insurance exchanges. Other ACA provisions that go into effect in 2014 are penalties on employers who do not offer health coverage to employees, the individual mandate to purchase health insurance and Medicaid expansion.
Avalere Health utilized microsimulation model estimates from various organizations and agencies — including RAND, the Urban Institute and the Congressional Budget Office — to determine net changes in the employer-sponsored insurance market. The research showed the changes to the employer-sponsored insurancemarket after 2014 is relatively insignificant. However, long-term erosion of the employer-sponsored insurance market — over the next 10-20 years — may be possible under certain circumstances. For instance, if a several large employers choose to stop health coverage for employees, others may follow suit.
Research also showed smaller companies that employ low-wage workers may choose to face penalties for not providing health coverage and instead have employees enroll in Medicaid or obtain coverage through an insurance exchange. "In these cases, it is more costly for employers to provide health benefits than for employees to gain coverage through Medicaid or the exchanges," according to the report.
The Avalere Health report is in stark contrast to a recent survey conducted by McKinsey, which found that 30 percent of employers "definitely" or "probably" plan to stop offering employer-sponsored insurance after 2014. The percentage surges to more than 50 percent among employers with a "high awareness" of reform.
Read the Avalere Health report on the employer-sponsored insurance market (pdf).
Related Articles on Employer-Sponsored Health Plans:
Washington State Seeks Federal Approval of Medicaid Exemptions
Survey: More Employers Plan to Cut Health Benefits Than Previous CBO Estimate
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One particular ACA provision of interest to employers is the offering of subsidized health insurance through state health insurance exchanges. Other ACA provisions that go into effect in 2014 are penalties on employers who do not offer health coverage to employees, the individual mandate to purchase health insurance and Medicaid expansion.
Avalere Health utilized microsimulation model estimates from various organizations and agencies — including RAND, the Urban Institute and the Congressional Budget Office — to determine net changes in the employer-sponsored insurance market. The research showed the changes to the employer-sponsored insurancemarket after 2014 is relatively insignificant. However, long-term erosion of the employer-sponsored insurance market — over the next 10-20 years — may be possible under certain circumstances. For instance, if a several large employers choose to stop health coverage for employees, others may follow suit.
Research also showed smaller companies that employ low-wage workers may choose to face penalties for not providing health coverage and instead have employees enroll in Medicaid or obtain coverage through an insurance exchange. "In these cases, it is more costly for employers to provide health benefits than for employees to gain coverage through Medicaid or the exchanges," according to the report.
The Avalere Health report is in stark contrast to a recent survey conducted by McKinsey, which found that 30 percent of employers "definitely" or "probably" plan to stop offering employer-sponsored insurance after 2014. The percentage surges to more than 50 percent among employers with a "high awareness" of reform.
Read the Avalere Health report on the employer-sponsored insurance market (pdf).
Related Articles on Employer-Sponsored Health Plans:
Washington State Seeks Federal Approval of Medicaid Exemptions
Survey: More Employers Plan to Cut Health Benefits Than Previous CBO Estimate
New Budget Deal Targets Two Reform Measures