A new Avalere study gives Democrats more ammunition against their claims that the McKinsey survey, which reported that a third of employers will soon be dropping health coverage for employees due to Obamacare, is an “outlier.”
The Avalere Health report, called “The Affordable Care Act’s Impact on Employer Sponsored Insurance: A Look at the Microsimulation Models and Other Analyses,” concluded that large employers are unlikely to stop offering coverage in the near-term as the benefit to dropping coverage might not outweigh the costs for both the employer and their employees.
“Overall, our analysis suggests that the ESI market will be fairly stable after 2014 when key ACA coverage provisions go into effect,” the report says. “The microsimulation models estimates from RAND, the Urban Institute, the Lewin Group and the Congressional Budget Office show net changes to ESI ranging from negative 0.3 percent to positive 8.4 percent compared to baseline projections without ACA implementation – not major changes in the market.”
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