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National Journal reported on the McKinsey and Co. study on how 30% of employer could drop group health benefits in 2014.
The study predicts that employers that understand some of th health insurance law could find savings in dropping coverage. This all depends on how the each state sets up the exchange plan.
When you look at this study it shows that employers will drop that group health plan if the exchange plans make sense. There are industries that will have a very difficult time keeping employees on a companies health plan. When we look at the 9.5% rule. If more the 9.5% of house hold income goes towards group health insurance premium then that employee can take the employer contribution and use that towards a policy through the exchange. If an employee fall into this category why would they stay on the group health plan in the first place. They can go to the exchange with the employers money and be eligible for tax subsidies.
Right now there is a real fear that the health insurance exchange is going to be a high risk pool. This view is shared nation wide with all the exchanges.
Once the exchanges are developed then we will have a good idea what employers and employees will decide.
