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Tuesday, August 28, 2012

Many Employers Choose To Continue Offering Health Insurance

Most people receive affordable health insurance through their employer. It is affordable because it is an employer-sponsored program and also because employees can make choices as to the level of coverage and premium amount that is affordable for them. A question on many employees' minds is whether or not their employers will continue to offer health insurance in 2014 when the Affordable Care Act insurance subsidies take effect.

The Affordable Care Act states that companies with more than 50 employees must provide health insurance or pay a fine. If the average cost to cover each employee with health insurance is over $15,000 and the fine for not providing health insurance is only $2,000 per employee, the math seems to be a no-brainer.

Not so, according to a recent annual Towers-Watson survey administered by the National Business Group on Health,  a consulting firm who surveyed over 500 companies who employed more than 1,000 employees. When asked about their plans to stop providing health insurance for their employees, 77 percent stated that the possibility was not likely. In fact, the survey indicated that most companies are still committed to providing health care insurance.

Although the math might not make much sense, it does make sense from the company's perspective. Health insurance and other benefits are important parts of the hiring package. When considering what health services cost, most people will weigh heavily towards accepting a position with a company whose health care package is more attractive. For individuals and families, salary is important but health care is a huge factor.

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