Wednesday, August 24, 2011

Employers to Jettison Health Insurance Benefit Come 2014

Health reform set the stage for employers to slowly shed that pesky health insurance benefit.  The pace is projected to pick up in 2014, when health exchanges come to life.  The AP reported:

Nearly one of every 10 midsized or big employers expects to stop offering health coverage to workers once federal insurance exchanges start in 2014, according to a new survey from a large benefits consultant.

Towers Watson also found in a survey completed last month that an additional 20 percent of the companies are unsure about what they will do.
This raises questions regarding CBO projections for health reform (PPACA).  As depressing as they are, employer estimates may be overly optimistic.  An earlier McKinsey study revealed more employers ready to ditch health coverage for workers. 

It's hard to trust those leading the health reform charge, the wolf in sheep's clothing and the conflicted PEU designer. There's lots of pain between now and 2014, when many workers get a long foreseeable kick in the teeth.

Update 12-2-12:  Walmart plans to jettison workers from their employer health insurance plan in 2013.  Lots of health care pain looms before, during and after PPACA as employers shift responsibility to workers and the government.  .

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