Employee Benefit News for School, City and County Employers

Will insurance exchanges eliminate employer-sponsored coverage?

Written by Valerie Ortiz | Oct 30, 2012 9:16:34 AM

In a recent blog piece for Bloomberg, Sara Hansard spoke with Paul Keckley and Paul Lamdin from Deloitte Consulting on the residual effects state health insurance exchanges may have. Both consultants agreed that many employers will be encouraged to drop benefits packages and health insurance plans and send workers to the exchange instead.

The regulations surrounding employer-sponsored benefit plans may be too demanding for several local or state employers, making it easier and more affordable to have employees find insurance coverage through the state exchange. While the exchange is also intended to provide  a one-stop-shop for employers looking for price comparisons on benefits packages, contract negotiations and other headaches may cancel out the perks and prompt employers to drop coverage, the consultants surmised.

For both employers and employees, there is a lot to consider when selecting health insurance coverage. As many regions are currently in the middle of open enrollment season when benefits can be reviewed and altered for the next year, Jason Alderman from Visa offered some tips to save money.

According to Alderman, many plans offered by insurance companies will change each year, providing employers and employees with opportunities to find something more affordable or seek out extended coverage to meet growing needs. It is also important to review benefits offered to a spouse at the same time. Many couples will opt to receive their health insurance coverage from one of their employers, if the policy is more comprehensive and affordable.