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Big Employers Will Continue to Offer Health Care Coverage, Study Says

11/11/10

  09:59:53 am, by MedBen5   , 182 words,  
Categories: News, Health Plan Management

Big Employers Will Continue to Offer Health Care Coverage, Study Says

Predicting whether or not employers will continue to offer insurance coverage after 2013 is a popular water cooler topic in health care circles. Benefits consulting firm Mercer has gone straight to the source and asked over 2,800 employees which direction they’re currently leaning on the subject. Mercer’s findings: Most medium and large companies will continue their employee plans, while smaller businesses aren’t quite as certain. Kaiser Health News provides a round-up of news stories about the survey.

With groups of 500 employees or more, only 6% of respondents said they would stop coverage once government-run insurance exchanges become available in 2014, while 20% of businesses with 10 to 499 told Mercer they are “likely” to drop health plans at that point. The survey notes, however, that in Massachusetts, where state-run insurance coverage has been available for three years, only a handful of employers have actually dropped their plans.

A major concern is how a proposed 40% excise tax on high-benefit “Cadillac” health plans will affect employers’ opinions. In the Mercer study, 39% of businesses with 50 or more employees may be subject to the tax in its current form, which takes effect in 2018.

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