LOS ANGELES (MarketWatch) — Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows.
While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly.
The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.
My comment: This is not a bad thing, employer-based health insurance is an anachronistic inefficiency left over from the wage-control era of the last century. It was bound to be destroyed with the next deflationary cycle in the employment market-- which is now. This will allow individuals more mobility and choice, and my prediction is that it's one step closer Medicare-for-all basic national health insurance which can be supplemented by private policies.