Analysis from Urban Institute sheds some light on concerns regarding Affordable Care Act
The Affordable Care Act may not be threatening employer-sponsored health insurance coverage, according to analysis from the Urban Institute. There had been concerns that the federal law would make it impossible for some employers to provide insurance coverage to their workers, while other companies would be forced to pay more money for offering this coverage. As such, employers would be disinclined to offer sponsored coverage to their employees, unless forced to do so by federal law.
No statistical change in employer-sponsored coverage since 2013
According to the analysis from the Urban Institute, there has been no statistical change in the rates that employers offer for their sponsored health insurance coverage since 2013. The Urban Institute found that 82% of employers offered insurance coverage to their workers. Of these, 94% were large organizations. Small businesses, which were expected to be most affected by the Affordable Care Act, were still quite interested in offering their employees health insurance coverage.
Sponsored coverage among small firms increases
The analysis also shows that the number of employees at large companies taking up sponsored coverage has remained unchanged since 2013. Among small businesses, however, take up of sponsored coverage has grown by as much as 73%. This is largely due to incentives provided by the federal government, which have made it possible for those living below the poverty level to obtain insurance coverage from their employers more easily.
May be too early to understand the full impact federal law will have on sponsored insurance coverage
Researchers working with the Urban Institute suggest that it may still be too early to determine the overall impact that the Affordable Care Act may have on employer-sponsored health insurance coverage. Workers are still expected to acquire insurance coverage from their employers for many years to come, but changes in the insurance industry and how it responds to the Affordable Care Act could place more pressure on employers. Time will tell whether or not the federal law will have a negative impact on employer-sponsored coverage.
Great article. The new book, “The End of Employer-Provided Health Insurance” is the first “how to” book for small businesses looking to offer health benefits. I highly recommend it for any small business owner that has questions about how the ACA affects them.