Employers Not Planning to Drop Health Care Benefits

October 23, 2012 ( – Employers say it will be business as usual in their approaches to health benefits, as they plan for new developments in the coming year due to the Affordable Care Act (ACA).

By Rebecca Moore | October 23, 2012
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According to a survey by the Midwest Business Group on Health (MBGH) in collaboration with The Benfield Group, for the next few years, there is little indication that employers plan to drop health care coverage and provide employees a set amount to buy health care coverage elsewhere.   

In preparation for the 2018 40% excise tax on high cost "Cadillac" plans, 31% of employers indicated they plan to reduce their benefits between 2014 and 2016, with 41% responding they will do so in 2017 or 2018.   

Only 9% of employers indicated they plan to participate in state health insurance exchanges when they begin. While there is interest in private health insurance exchanges, at this time only 4% believe they will use these for active employee coverage in 2014 to 2016, while 11% indicated they will move toward private exchanges for post-65 retirees.