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Employers Will Continue Offering Coverage 'Til 2014, Survey Says

09/22/11

  05:28:52 pm, by MedBen5   , 188 words,  
Categories: News, Health Plan Management

Employers Will Continue Offering Coverage 'Til 2014, Survey Says

Whatever its flaws, the Affordable Care Act has certainly stimulated job creation. Based on the number of studies we’ve seen that predict whether or not employers will drop insurance coverage, consulting firms must be pulling people off the street to fill research assistant positions.

The latest survey, from Towers Watson, finds that most medium-to-large employers will continue to provide coverage – at least for the time being. According to MedPage Today, 71% of firms plan to offer health care benefits to their workers through 2014, when health insurance exhanges are formally introduced.

Ah, but what happens then? About one-third of companies were undecided about whether they would continue coverage after 2013. Some employers said that if they did stop offering benefits, they would consider compensating employees with a larger salary. Still, more than 75% said they think health insurance will continue to be part of their total “employee value proposition” in 2014.

The July survey of 368 mid-to-large-sized companies also found that 88% of respondents plan to take steps to reduce health care costs in the upcoming years, and almost half would consider substantially reducing the value of the benefits offered to employees in 2014 and 2015.

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