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Small Business Employee Benefits and HR Blog

Up to 60% of Employers Will Drop Group Health Insurance In 2014

According to a recent 2011 survey by McKinsey & Company, up to 30% of employers will "definitely" or "probably" stop offering employer-sponsored health insurance after 2014. 

Health Insurance

Among employers with a high awareness (“educated employers”) of health reform laws, the percentage of employers wanting to drop coverage increases to more than 50%.

The survey also found that up to 60% of educated employers plan to definitely or probably pursue alternatives to offering health insurance including:

    1. Dropping coverage,
    1. Offering it through a defined-contribution model, or
    1. Offering it only to certain employees.

Click here to download the full report.