The effectiveness of the complex design of the Patient Protection and Affordable Care Act continues to show through as the act becomes more ingrained in the health care system.
A study from TAG Employer Services reveals that most companies with fewer than 50 employees will continue to offer health insurance of some kind. These smaller employers aren't bound by most of the act's requirements, which fall most heavily on companies with 50 or more workers.
Of those surveyed, just 4 percent said they probably wouldn't continue to offer health insurance. More than two-thirds (68 percent) strongly agreed that they'll keep offering health coverage, and another 28 percent indicated they most likely would.
Recommended For You
Concerns had been raised about whether employees at smaller companies would have employer-sponsored coverage, since the act didn't require it. The theory was that small businesses might drop coverage to save money. But that's not happening, at least based upon TAG's research.
"For the great majority of organizations we surveyed the Affordable Care Act is not an issue since they employ fewer than 50 workers and aren't affected by the law's requirements," said Jack Biltis, chief executive officer for TAG, an administrative services organization with client companies nationwide. "Nevertheless, for most small employers health care coverage isn't expendable. At least four out of five mid-tier companies offer some type of insurance. Not only is it good business, healthcare coverage is also essential for companies to hold their own in the competition for talent."
Nonetheless, these smaller employers are still concerned about the cost of coverage. Asked to rank their health insurance-related worries for the year ahead, here's what they said:
- Keeping health care costs under control 77 percent
- Helping employees make the best choice 10 percent
- Avoiding health care penalties 8 percent
- Avoiding confusion 5 percent
"Employers are wrestling with cost control and have shifted part of the burden onto employees, a long-term trend," Biltis observed. "What they want is a program that's cost-effective and meets the particular needs of their workers, needs that vary depending on the demographics, the industry and other factors. As a rule, employers aren't looking for a 'cheap' solution and with all the flux in the health care marketplace they expect to hold the course, at least over the next year or two."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
