From Marketwatch (a publication of the Dow Jones company…not a blog):
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. I’m actually surprised that more employers haven’t owned up to dropping their employees’ health coverage. It appears that there is up to a $3,000 per employee per year fine that is assessed to companies who don’t provide coverage, but, according to the Kaiser Family Foundation 2010 health care survey, the average cost of single person coverage is over $5,000 per year. Doesn’t make business sense for any company to provide health coverage for their employees (starting in 2014).