A recent survey by McKinsey found that 30 percent of employers "definitely" or "probably" plan to stop offering employer-sponsored health insurance after 2014, when subsidized health insurance through exchanges will be offered to Americans as mandated by the Affordable Care Act.
The Congressional Budget Office estimates that only 7 percent of employees currently covered by employer-sponsored insurance will have to switch to subsidized-exchange policies in 2014; however McKinsey research suggests that number could be much higher.
Other findings include:
According to the McKinsey report on its research, "Employers will have to balance the need to remain attractive to talented workers with the net economics of providing benefits — taking into consideration all the penalties and tax advantages of offering or not offering any given level of coverage."
Read the McKinsey report on employer-sponsored health coverage.
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The Congressional Budget Office estimates that only 7 percent of employees currently covered by employer-sponsored insurance will have to switch to subsidized-exchange policies in 2014; however McKinsey research suggests that number could be much higher.
Other findings include:
- Among employers with a high awareness of reform, the proportion who definitely or probably plan to stop offering employer-sponsored inurance increases to more than 50 percent, and upward of 60 percent will pursue some alternative to traditional employer-sponsored insurance.
- At least 30 percent of employers would gain economically from dropping coverage even if they completely compensated employees for the change through other benefit offerings or higher salaries.
- Contrary to what many employers assume, more than 85 percent of employees would remain at their jobs even if their employer stopped offering ESI, although about 60 percent would expect increased compensation.
According to the McKinsey report on its research, "Employers will have to balance the need to remain attractive to talented workers with the net economics of providing benefits — taking into consideration all the penalties and tax advantages of offering or not offering any given level of coverage."
Read the McKinsey report on employer-sponsored health coverage.
Related Articles on Employer-Sponsored Health Coverage:
Americans with Employer-Based Coverage Fell for 9th Straight Year
HDHPs Reduce Health Spending by 14%
Inflation in Health Benefits Highest Since 2004; Deductibles Reach $1,200