Providing health insurance very easy for large employers
Offering health insurance to employees still will make economic sense for larger employers and those with higher-paid workforces when key parts of the health care reform law take effect in 2014, an analysis concludes.
But for smaller firms and those largely comprising lower-wage employees, dropping coverage could be financially attractive, according to the analysis by researchers at the University of Minnesota and the Center for Studying Providing health System Change in Washington.
Still, companies that employ the lion’s share of the workforce will continue to have a financial incentive to provide coverage in 2014 and beyond, according to the research conducted for the National Institute for Health Care Reform, which was established by Chrysler Group L.L.C., General Motors Co., Ford Motor Co. and the United Auto Workers.
The findings are largely based on health care expenditure data compiled by the federal Agency for Healthcare Research and Quality.
“The findings indicate establishments employing the vast majority of workers — 81% — currently offering insurance will continue to have an economic incentive to offer coverage,” according to the analysis.
There are several reasons why there would be no financial advantage for employers and employees to drop employer-provided health coverage. Among other issues, employers with 50 or more workers would face an annual $2,000 penalty per full-time employee, or those working at least 30 hours a week, if they did not provide coverage starting in 2014.
Read more: http://funproducer.com/providing-health-insurance-very-easy-for-large-employers.html#ixzz2GnzNtZVM
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