10% of Mid-Sized or Large Employers to End Health Coverage When Insurance Exchanges Start

Nearly one of every 10 mid-sized or large employers plans to stop offering health coverage to employees once federal health insurance exchanges begin in 2014, according to a survey from benefits consultant Towers Watson.

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According to a News Tribune report, Towers Watson said an additional 20 percent of the surveyed companies said they are unsure about what they will do. The remaining 71 percent will continue to offer benefits.

States must set up health insurance exchanges by Jan. 2014 or invite the federal government to intervene. Benefits experts say retailers and companies that pay low wages are the most likely to drop employee coverage when health insurance exchanges begin. The exchanges will provide a marketplace for small businesses and individuals to comparison shop for health insurance, potentially lowering costs and improving transparency.

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