Deloitte Survey: Ten Percent of Employers Are Slashing Health Care Insurance Coverage

By David Vaughan
Director of Projects, TSG Global

If your employer’s been covering all or part of your health insurance, that may just be about to change.

A new survey has found that one in 10 employers in the US plans to drop health coverage for workers in the next few years as the bulk of the federal health-care law begins, and healthcare costs keep rising, according to a story by Louise Radnofsky.

But don’t think you’re out of the fire if the company you work for doesn’t say it’s going to do it. Even more businesses said they may do so over time, according to a study that was released today by consulting company Deloitte (News - Alert), Radnofsky writes.

The majority of Americans under age 65 who have health insurance get it through an employer.

Right now 81 percent of companies said they plan to continue providing health benefits even as new rules begin in 2014 under the Affordable Care Act, according to Chad Terhune.  He notes that an additional 10 percent of employers said they weren't sure, the survey said.

Terhune reveals that more than 160 million Americans get their healthcare through employer-sponsored plans, unlike the unlucky ones like me who are self-employed (and self-insured.)  According to the Kaiser Family Foundation & Health Research Educational Trust, companies were forced to spend an average of nine percent more for healthcare benefits last year, while average wages grew 2.1 percent, Terhune writes.

But here’s the good news: more employers are seeking out new ways to provide health benefits. Some are looking into defined-contribution plans where they give workers a fixed amount of money, like a 401(k) plan, and allow them to buy their own insurance on the open market or in a private exchange, according to Terhune.

Other companies hope to set up contracts directly with hospitals and large physician groups in hopes of striking a better deal.

But is healthcare getting any better as it gets more expensive? Terhune reports that nearly two-thirds of employers, or 64 percent, “gave the U.S. healthcare system a C or lower on performance.”

It’s anyone’s guess if employers will also end the wellness programs they’ve begun for employees – ironically, now that they’re catching on!

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