Government report finds employers likely to drop insurance

Not everyone agrees with a recent national survey that found most employers don't plan to ditch health insurance for their employees. Price increases resulting from the new health reform law could in fact prompt some employers to stop providing healthcare benefits to employees, according to a new report from Richard Foster, the chief actuary of the Centers for Medicare and Medicaid Services. "A number of workers who currently have employer coverage would likely become enrolled in the expanded Medicaid program or receive subsidized coverage through the [Health] Exchanges. For example, some smaller employers would be inclined to terminate their existing coverage, and companies with low average salaries might find it to their--and their employees'--advantage to end their plans...," the report states. Employer penalties for not offering health insurance "are relatively low compared to prevailing health insurance costs," the report adds. Article

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