More small businesses might drop health benefits

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in Employee Benefits Program,Human Resources

The Affordable Care Act (ACA) probably won’t prompt many large employers to drop health insurance benefits, but small businesses are more likely to do so than they were last year, according to the National Survey of Employer-Sponsored Health Plans, an annual study conducted by the Mercer HR consulting firm.

Preliminary results from Mercer’s 2013 survey, released late last year, found that few large employers—just 6% of those with 500 or more employees—believe it is likely that they will drop their employee health plans within the next five years and send employees to public health insurance exchanges created by the ACA. That’s similar to findings from the past three years.

However, the portion of small employers that say they’re likely to eliminate health benefits within five years jumped from 22% in 2012 to 31% in 2013.

The full Mercer survey will be released in April.

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