30% of Employers Say They'll No Longer Provide Health Benefits After 2014
The results of a recent survey of 1,300 employers by McKinsey & Co., say 30% of employers asked said they “definitely” or “probably” will stop offering health care coverage after 2014.
Employers that choose to eliminate health benefits will pay a penalty of $2,000 a year for each full-time employee, a much lower cost than the $9,500 per employee that employers paid last year to provide health plans.
Earlier surveys have provided lower estimates of employers dropping coverage after 2014, including a survey by Mercer last year that set the number at around 6% for employers with at least 500 employees and 20% of employers with 10 to 499 employees.
If you are an employer, do you plan to continue to offer health care benefits to your employees after 2014?