Study: 30% of employers to drop health insurance - OCRegister

The new federal health care law can significantly reduce the number of Americans who get their insurance through their employer health, according to a new report from the consulting firm McKinsey & Company management.

In a survey of 1,300 employers, 30% said that they definitely or probably stop will be offering the employee insurance in 2014, when most of the provisions of the law enter into force. Of employers who say they know much about reforms, more than 50% say they find alternatives to employment-based health insurance.

These figures are much higher than other studies, McKinsey acknowledged. For example, the Congressional Budget Office has estimated that only 7 per cent of employees who currently have insurance through their employers to pass exchange of health provided by the Government.

But McKinsey report defends the results, saying that his pollsters explains options to abandon completely of cover and the new law.

The affordable Care Act passed in 2010 requires from 2014, all employers of workers 50 or more to provide a reasonable level of coverage of health or pay a penalty of $2,000 per worker (not counting the first 30 employees) and ne not to offer the best benefits employees highly paid. Those who are not provided by the employer or unemployment insurance can get grants to buy policies through new insurance exchanges created by the States.

Proponents have argued that more people will be insured by the new law. According to the Commonwealth Fund 46% of firms with less than 10 employees and 52% of companies less 50 employees offer health insurance, compared to 98% of undertakings with more than 200 employees.

Earlier this year, 76% of employers said they expected their costs to increase under the new law.

The McKinsey report, has said that many employers were not simply given their own bottom line but also realized that the lower wage workers will be able to get the best coverage at a lower cost through health exchanges.

And a piece of half of the companies that provide health coverage now, are more interested to alternatives such as defined-contribution policies and increasing workers wages to offset their costs of purchase of insurance through an Exchange, that dropping coverage completely.

According to Liazon, a provider of benefits defined-contribution, when companies moved the purchase of policies to give employees a fixed amount to buy their own coverage, 70% of employees chose a less expensive health plan.

Consumers of McKinsey research revealed that some employees do value insurance employer provided as much as enterprises consider. "85% - and 90% of highest income (employees) - say that they stay with an employer that dropped insurance employer sponsored," said McKinsey. Many workers said that they would prefer that a pay raise and younger employees, said that they would be personal professional development opportunities and work-life balance value more health benefits.

Six of the 10 employees also said they expect a pay increase if their employer dropped health insurance.

Click here to see the full report (free registration required).

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The new federal health care law can significantly reduce the number of Americans who get their insurance through their employer health, according to a new report from the consulting firm McKinsey & Company management.

In a survey of 1,300 employers, 30% said that they definitely or probably stop will be offering the employee insurance in 2014, when most of the provisions of the law enter into force. Of employers who say they know much about reforms, more than 50% say they find alternatives to employment-based health insurance.

These figures are much higher than other studies, McKinsey acknowledged. For example, the Congressional Budget Office has estimated that only 7 per cent of employees who currently have insurance through their employers to pass exchange of health provided by the Government.

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