Jun 13, 2011
Thirty percent of employers will cancel health plans by 2014 because of Health Care Reform, according to a McKinsey Research study.
The research suggests that when employers become more aware of the new economic and social incentives embedded in the health care law and of the option to restructure benefits beyond dropping or keeping them, many will choose to make dramatic changes.
The Congressional Budget Office has estimated that only about 7 percent of employees currently covered by employer-sponsored insurance (ESI) will have to switch to subsidized-exchange policies in 2014. However, McKinsey’s early-2011 survey of more than 1,300 employers across industries, geographies, and employer sizes, as well as other proprietary research, found that reform will provoke a much greater response.
To read a summary of the report click “How US health care reform will affect employee benefits”.
Source: McKinsey Research