Some "big box" employers may cut health coverage for employees, survey says

Wednesday, August 24, 2011 - 5:30pm

One in ten employers may stop offering health coverage to workers after insurance exchanges begin in 2014 as part of the health care overhaul. That's according to a survey by a major benefits consultant.

Towers Watson says surveys show another one in five companies are not sure about what they'll do. Another big benefits consultant, Mercer, said a survey of smaller employers that eight percent are either "likely" or "very likely" to end health benefits after the exchanges start. That's the part of the health care plan that allows people to "shop around" for insurance...and receive government assistance based on income. That has an especially big impact on people who work by the hour, like people who work in retail.

The surveys suggest that some businesses feel they will be better off dropping health insurance coverage once the exchanges start, even though they could face fines and tax headaches. But they go on to stress they haven't made any decisions yet.

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