“If you like your health plan, you can keep your health plan.” Not so true for individuals, but employers believe it is a good idea. The creators of Obamacare predicted that employers would drop coverage and make employees purchase insurance off of the federal marketplace, but those predictions have been proven quite wrong. Most companies and large employers that offered health benefits before the law have remained committed to providing them. Health care is an important recruiting and retention tool, as qualified employees expect this benefit.
Companies get a large tax break from providing insurance. Large employers will be fined $2,000 per employee if they don’t offer insurance. If they dropped coverage, they would have to pay employees more to purchase their own plan or risk losing workers. Nearly 155 million Americans have employer-based health insurance, over half of people under 65. This number is expected to fall to 152 million by 2019, then hold stable through 2026. The employer market has held firm for the last five years after a steady decline since 1999. The plans offered also have remained the same.
Problems during the start of Healthcare.gov have made dropping coverage less appetizing. Insurance options are limited on the marketplace, and the plans on the exchanges are less generous than those offered by employers, with higher deductibles and fewer choices of hospitals.
The largest declines in coverage have been with small businesses, a steady decline since before the signing of Obamacare, from 68% to 56%. About seven percent of companies with less than 500 workers are likely to drop coverage in the next five years. The smallest businesses with low-income workers will clearly favor shifting employees over to the exchanges.
The Congressional Budget Office predicts a stabilizing employer market, but ten years is a long time and the predictions could be wrong… again.
MediBid offers employer health benefits for companies large and small. MediBid bypasses expensive insurance networks and increases choice while decreasing costs. The average MediBid price is often less than half of the insurance discounted price and usually come with much lower deductibles.
Abelson, Reed. “Despite Fears, Affordable Care Act Has Not Uprooted Employer Coverage.” Business. The New York Times, 4 Apr 2016. Web. 5 Apr 2016.