McKinsey & Co., a well known and respected consulting firm with offices around the world, recently published its findings on a study that it conducted to determine how the new health care legislation, the Affordable Care Act, will affect employee benefits.
The findings have raised eyebrows and also the ire of White House officials who have responded that the study is an “outlier” from other studies.
McKinsey found that 30 percent of employers will definitely or probably stop offering employer-sponsored insurance in the years after 2014.
The report states that before each employer was surveyed, McKinsey explained the complicated law so that they understood the new economic and social incentives imbedded in it. McKinsey also outlined various options on how to restructure health benefit packages rather than dumping them altogether.
This level of attrition is a contrast to the Congressional Budget Office’s estimate that 7 percent of employers will have to switch to subsidized exchange policies after 2014, when many of the law’s provisions take effect and individuals without employer-provided health insurance will receive government subsidies for health insurance.