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June 20, 2011 at 08:00 PM
Almost one-fifth of employers who were contacted by a benefits manager say they will drop their group health insurance plans when the insurance exchanges come into being in 2014.
At the same time, 70% of employers contacted by Lockton, a Kansas City-based brokerage and consulting firm, say they are “apprehensive” about the reform law’s mandates. They say that the ability of the exchanges to offer federally subsidized coverage to most workers will give employers the flexibility to terminate group coverage.
The Lockton survey found that the employers who responded to the survey are “frustrated” that the law makes health plan administration an even more costly and burdensome endeavor than it is now. Indeed, 80% of responding employers say they are “concerned” or “very concerned” about the additional administrative obligations health reform will require of them, Lockton officials say.
Other aspects of the law that are of high concern to respondents include the cost impact of the 2010-11 benefit mandates (elimination of dollar maximums, coverage of adult children, etc.) and the potential cost impact of automatic enrollment in 2014, the survey found.
