One in 10 employers could drop health benefits

By on July 29, 2012

new report by consulting firm Deloitte finds that “9% of companies representing 3% of the workforce anticipate dropping coverage in the next 1-3 years, versus 81% of companies representing 84% of the workforce which plan to continue. 10% of companies representing 13% of the workforce are not sure.”

The Hill: “The study found that smaller firms were most likely to say they will drop coverage. Thirteen percent of companies with 50 to 100 workers said they would end policies within three years, compared with 2 percent of companies with more than 1,000 workers.”

Wall Street Journal: “Deloitte’s findings differ from estimates by rival firm McKinsey & Co. last year that found 30% of employers say they would ‘definitely or probably’ stop offering health insurance after 2014… But around one in three respondents said they could decide to stop offering health coverage if they find that the law requires them to provide more generous benefits than they do at the moment; if a tax on high-cost plans takes effect in 2018 as scheduled; or if they conclude that the cost of penalties for not providing insurance could be less expensive than paying for benefits.”

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