Lockton Benefit Group President Michael Brewer told lawmakers in Washington, D.C., more than 80 percent of employers are so committed to their employees that they plan to continue to offer group insurance, despite the uncertainty surrounding health care reform.
Still, health care reform's costs and administrative hurdles could cause these employers to reduce full-time jobs or limit expansion abilities.
On July 28, at a hearing for a subcommittee of the Oversight and Governance Reform Committee of the U.S. House of Representatives, Brewer said, "One of our employers simply stated, 'We operate our business on paper-thin margins, and any additional government mandated costs will force us to either close the business or reduce the hours of our full-time employees.' Now we know this is not the intent of health reform, but this is the result of health reform, and this is the reality of health reform for many employers: job loss and reduction in employment opportunities."
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According to the Lockton survey, only about 20 percent of employers will contemplate ending their group health plans when the insurance exchanges begin in 2014. However, the other 80 percent, Brewer said, overwhelmingly said they must offer health insurance to attract and retain their targeted employees, which is the reasoning for their commitment.
Brewer also said when employers that currently plan to offer coverage see it's not a requirement to attract and attain employees, many employers will likely leave the group insurance market, and this could significantly distort Congressional Budget Office estimates on the number of Americans expected to rely on the health care exchange system.
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