It seems as though there is some debate as to whether or not people really will lose their employer sponsored health insurance in 2014. It isn’t easy to predict exactly how employers will respond to the health care regulations that will begin in a few years time. A study done by McKinsey finds that many employers will drop their employee health insurance after the exchanges exist in 2014.
A study done by McKinsey was based on a survey that was done that included more than 1,300 employers. The size of the businesses varied.
Overall, the results showed that 30% of the employers in the survey said that they will “definitely” or “probably” stop offering employer sponsored health insurance to their employees in 2014, when the health insurance exchanges will be up and running. The study also found that 50% of the companies that had a really clear understanding of health reform law are planning to drop their employer sponsored health insurance plans.
Researchers at McKinsey feel that health care reform will result in a “radical restructuring” of how employer sponsored health insurance will work in the future. It seems as though a vast amount of businesses will find that it makes more financial sense for them to stop paying for their employee’s health insurance.
Many employers are going to find that it will cost less to offer some of their employees higher salaries than it does to pay for the health insurance of many employees. This means that there is potential that those of you who are getting your health insurance from your job might lose it after all.
The same study by McKinsey found that 85% of employees would still remain at their current jobs even if their company stopped offering them employer sponsored health insurance. Out of the group that would stay, 60% said that if they lost their health insurance they would expect their employer to increase their compensation.
This make some sense, considering the fact that most employees who have health insurance currently have some money taken out of their paychecks in order to pay for the premiums. If they are no longer getting insurance, then, logically, their pay should go up a bit.
Those who lose their employer sponsored health insurance in 2014 should be able to find affordable health insurance through the exchanges. So, even if the way employers look at insurance changes, at least it won’t mean that people will be completely going without health insurance coverage.
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