One In Ten Employers Might Drop Healthcare In 2014

One in ten midsized or bigger employers will stop offering health insurance once insurance exchanges begin operating in 2014, according to a new survey, the AP reports.

Towers Watson surveyed more than 1,200 companies to come up with the number; another 20 percent said they are “unsure” what they’ll do after 2014.

The result, the AP says, suggests “some businesses feel they will be better off dropping health insurance coverage once the exchanges start, even though they could face fines and tax headaches.” Health benefits cost a company, on average, $13,770 per worker per year, or more than double what it cost a decade ago.

The companies most likely to drop company-sponsored insurance, the AP said, are those that have a low percentage of workers enrolled or those with high staff turnover, like retail and hospitality businesses, where benefits are not often seen as crucial to retaining workers.