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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.

Health care reform laws that go into effect in 2014 will give individuals the option to purchase coverage from health insurance exchanges and offer federal health insurance premium subsidies to lower-income uninsured employees.

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?


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