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By Leah Shepherd<\/p>\n
Will the link between employment and health insurance survive?<\/p>\n
That\u2019s one of the serious questions that a new report from the Employee Benefit Research Institute (EBRI), a nonprofit research organization based in Washington, D.C., raises about the future of employee benefits.<\/p>\n
Paul Fronstin, head of the health research and education program at EBRI, noted that the Affordable Care Act \u201clevels the playing field like it’s never been before,\u201d as employees will not necessarily have to depend on getting health coverage through work.<\/p>\n
\u201cEmployers are just not sure if they’ll be offering coverage in the future,\u201d he added.<\/p>\n
In fact, the U.S. Congressional Budget Office estimates that 3 million to 5 million fewer Americans will obtain coverage through their employer each year from 2019 through 2022 than would have been the case without the ACA.<\/p>\n
Starting next year, the ACA will require employers with at least 50 full-time employees to offer a minimum level of health coverage to workers, but some employers may prefer to pay a tax penalty instead of paying for the coverage. The need to recruit and retain good talent is what keeps employers offering benefits.<\/p>\n
Kathryn Gaglione, a spokesperson for the National Association of Health Underwriters, says, \u201cOffering comprehensive, competitive benefits makes for a more robust workforce and better compensation for individuals trying to support families \u2026 Many American business owners understand the benefit to offering employees and their families coverage. Employer-sponsored health plans might change, but they won\u2019t be going anywhere.\u201d<\/p>\n
Most employees want and expect health insurance through their employer, especially knowing that it\u2019s much less expensive to receive group coverage that comes with an employer\u2019s premium contribution than to buy individual coverage on a health insurance exchange (with no employer contribution).<\/p>\n
Nonetheless, \u201cone could argue workers won\u2019t need their employers any more for health benefits once the law is fully implemented, and health exchanges become a viable option to job-based health benefits,\u201d Fronstin said.
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