The Mercer LLC. 2010 National Survey of Employer-Sponsored Health Plans found that most employers will continue offering health coverage despite the availability of health insurance exchanges.  The survey found that only 6 percent of businesses with 500 or more employees plan to eliminate their health plans when health insurance exchanges become operational in 2014; however, 21 percent of small businesses reported that they are likely to stop offering health coverage.  In addition, Mercer estimates that 39 percent of employees with more than 50 employees could trigger health care reform’s “Cadillac” insurance tax when it is implemented in 2018. 

From the survey:

While employers are encouraged to offer coverage under the new health care reform rules, they can choose not to and (starting in 2014) pay a penalty that may be less than what they currently spend on health benefits.

In a survey released today by consulting firm Mercer, employers were asked how likely they are to get out of the business of providing health care once state-run insurance exchanges become operational in 2014 and make it easier for individuals to buy coverage. For the great majority, the answer was “not likely.”

The survey results, a preview of findings from Mercer’s 2010 National Survey of Employer-Sponsored Health Plans to be announced later this month, will be released today at Mercer’s inaugural Innovation Conversation webcast, which begins at 3 p.m. Eastern Time (click on the following link to register:  “True Health Care Reform through Innovation”). More than 2,800 employers participated in the annual survey, now in its 25th year.

Full Report: Few employers planning to drop health plans after reform is in place, survey finds

Mercer LLC. (2010). Few employers planning to drop health plans after reform is in place, survey finds.