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Is the Desire for Employee Provided Health Insurance Waning

Monday, March 28, 2016

After the Affordable Care Act passed, many experts questioned whether or not employees should continue to offer health insurance to full time workers. The line of reasoning was that as online exchanges provided access to affordable coverage, employers could get out of the insurance business completely. However, most companies have continued to offer this benefit, mainly because it’s a leverage point in recruiting and retention. As long as employees value coverage, it seems employers will continue to provide it. However, this trend might be shifting. According to a survey published in 2015, about 20 percent of workers would be willing to take fewer health care benefits in exchange for higher wages. And that figure represents nearly double the percentage of employees who said the same thing in 2010. The survey, which was conducted by the Employee Benefit Research Council, said this trend is expected to continue. Nearly 66 percent of employees said they are satisfied with their current mix of wages and benefits, but that number is down from the 74 percent who said they were satisfied two years ago. This suggests more employees may be comfortable purchasing their own coverage to meet their specific needs, according to the survey.

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