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New study: 1 in 10 employers to stop offering health benefits

Christian Schappel
by Christian Schappel
August 26, 2011
1 minute read
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What are you planning to do with your employee healthcare plan in 2014? A recent study revealed one in ten mid-size employers will stop offering their employees coverage once the insurance exchanges become operational.
And as you can image, the news doesn’t appear to be sitting too well with the Obama administration.
The Associated Press is reporting that the White House has taken issue with those figures, which came from a recent Towers Watson study.
This is the second such study to have evoked ire from the White House this summer.
In June, a McKinsey & Co. study found 30% of all employers will “definitely” or “probably” stop offering their workers health insurance once the bulk of the healthcare reform law’s mandates take effect in 2014.
In both cases, White House officials questioned the validity of the studies, by citing two other studies — one from the Congressional Budget Office (CBO) and another from the Urban Institute — that projected the reform law and its regulations will have little effect on employer-sponsored plans nationwide.
The Towers Watson study begs to differ. In addition to the 10% of the companies in the survey to say they’ll drop coverage in 2014, another 20% admitted they are unsure what they’ll do when the exchanges become operational.

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