Will employers drop health insurance for employees?
A look at results of new study
- Duration 2:52
- Date Jul 25, 2012
A look at results of new study
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A new study shows the new health care law actually might hurt your chances of getting insurance at least through the company you work for.
According to the national consulting firm nearly one in ten employers say they will drop insurance coverage for their workers.
Since everyone is going to be forced to carry insurance or pay a fine soon the extra costs might hit individuals.
As well as the government.
Paul -- is executive director of Deloitte center for health solutions so Paul in looking at this issue you find that.
Already about 10% of other companies out there have dropped health insurance coverage over the last decade is that true.
That's correct and it's because a cost.
Really the employer is facing.
Kind of a double whammy they have to take care of rising health care cost and the under payments for those without insurance for Medicare and Medicaid.
Those under payments.
Are passed through to employers so they they it's a double whammy.
I imagine I imagine we're talking mostly about small businesses and when they look at their competitors who may have dropped.
You find that about 10% or so are thinking of dropping health care over the next few years.
That's exactly right larger the company the less likely they are to think they would drop coverage and the irony is all these companies wish not to drop coverage it's just a matter of cost so I don't think this is really a matter of the affordable -- per say as much as it is a fear.
That cost are gonna continue to draw employers away from coverage altogether -- President Obama famously said before this thing got past he said if you like your health care plan you can keep it I guess you can only keep -- if the plan is still offer right.
Well that's correct but you know there are a lot of things in the law that conceivably could bend the cost curve.
Accountable care bundled payments basically paying for results instead of volume.
But those things play out over several years and employers face premium increases in the next sixty days.
So -- it's it's really.
A challenge for an employer to figure out how -- gonna navigate through this in the smaller employers face that the harshest.
-- we pass this thing -- in the congress did two and a half years ago does anybody really understand what this law is gonna do.
Well you know our survey found that a lot of employers know what they're required to -- around a bit of fits but the rest of the -- they really don't understand.
Our consumer survey say the same thing most people.
Don't understand the law now you know two and a half years later so.
We got an education process to do on all sides this debate to make sure we're talking about.
The Affordable Care Act in total rather than the pieces that get picked apart Paul carefully from the Deloitte -- all thank you.
My pleasure and.