Tuesday, July 24, 2012

Survey: 1 in 10 U.S. Employers To Drop Health Coverage

Posted By on Tue, Jul 24, 2012 at 3:42 PM

Nearly 10 percent of employers in the United States say they plan to cancel health care coverage for workers in the next several years as insurance costs rise.

A new survey, released by Deloitte, says that around one in 10 employers are considering plans to drop coverage as the bulk of the federal Affordable Care Act comes into effect. Those companies represent only 3 percent of the total workforce. The bulk of employers, around 80 percent, were planning to continue providing benefits, and the remainder weren’t sure. The survey was done before the Supreme Court ruled to uphold the health care overhaul law in June.

Smaller firms were the most likely to consider dropping health insurance. The Wall Street Journal reported that companies with 50 to 100 workers were most likely to say they would drop coverage, with 13 percent of them saying they expected to do so in the next one to three years. Nearly all of the larger companies with more than 1,000 employees told surveyors they would continue to provide coverage. Companies with fewer than 50 employees are not required to provide insurance.

The majority of employers said they will shift more of the costs of insurance onto their employees by raising co-pays, deductibles and premiums. According to the Los Angeles Times, more employers are exploring new lower cost ways they can keep providing health benefits.

More than 160 million Americans rely on employer-sponsored plans for their health care.

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