Employers Still See Reasons for Offering Health Care Coverage

June 11, 2012 ( - Nearly half (46.2%) of surveyed organizations report they definitely will continue to provide health care coverage for all full-time employees in 2014.

By Rebecca Moore | June 11, 2012
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An additional two in five (39.3%) are very likely to do so. Only 1% of respondents to the Health Care Reform: 2012 Employer Actions Update survey from the International Foundation for Employee Benefit Plans believe they definitely will not provide coverage to all full-time employees in 2014.  

Among organizations that will definitely continue to provide coverage, respondents overwhelming chose three reasons for maintaining coverage: to retain current employees (55.4%), to attract future talent (55.4%), and to maintain or increase employee satisfaction/loyalty (53.5%).  

Among employers that did not state that they definitely will continue to provide coverage to all full-time employees in 2014, the most likely cause for discontinuing coverage is that providing it is becoming too expensive (cited by 45.1% of respondents). Approximately one-third state the cause for dropping coverage would most likely be that other organizations in their industry or their geographic area are discontinuing coverage (27.5% and 4.8%, respectively).   

Among the respondents that are considering using the exchanges in 2014, more are likely to direct only some employees to the exchanges and continue to provide coverage for others as opposed to dropping coverage for all employees.