While the recent McKinsey survey drew conflicted attention for stating one-third of employers are expected to drop health coverage after 2014, research from the Benfield Group offers a different perspective — that most employers will continue to offer comprehensive health insurance benefits to their employers.
This information comes after the group surveyed more than 100 jumbo employers (5,000-plus employees) in the United States.
Scott Thompson, president of employer practice for Benfield, says jumbo employers emerged as an important segment to single out because they "provide health care benefits to 58 million covered lives in the United States, or about one-third of all those covered by employer-sponsored insurance; [they] typically lead innovations in health care benefits and programs; and are both willing and able to drive change through the health care supply chain."
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Of those surveyed, just 7 percent of jumbo employers said they considering dropping active employee health care coverage in 2015 and beyond.
"Jumbo employers are working harder than ever to shore up coverage, manage expenses and provide compelling benefits to their employees," the Benfield Group press release stated.
Only 1 percent of employers describe their approach to providing active employee benefits post reform as "looking for the exits."
When Benfield asked employers what would cause them to exit employer sponsored health care, the responses focused more on the need to compete for talent than to manage costs.
In fact, nearly three-quarters of employers surveyed indicated "competing for talent" was the main factor they would consider in a decision to continue providing health and pharmacy benefits to employees.
Conversely, when asked the likelihood of discontinuing benefits to their employees, 21 percent said they were highly likely and 49 percent somewhat likely to drop coverage if their industry competitors stopped offering health benefits.
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