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California Employers Dropping Health Coverage: More Evidence Americans Cannot Keep the Coverage They Have

January 05, 2012

It might be a new year, but a report released today finds that the news is the same as 2011 – the Democrats’ health care law is harming the ability of employers to offer health coverage.  Findings in the newly released 2011 California Employer Health Benefits Survey reveal that the proportion of California employers offering coverage to their employees declined from 73 percent to 63 percent since the Democrats’ health care overhaul was signed into law.  “To be down to 63% [of California companies offering coverage] is huge. It used to be up over 80%,” said Anthony Wright, executive director of Health Access California.

Unfortunately, the disturbing results from California are consistent with other national surveys released throughout 2011 that show the Democrats’ health care law is leading to a decline in employer-provided health care:

  • A report released by the McKinsey Group showed, overall, 30 percent of employers say they will definitely or probably stop offering health care coverage after 2014.
  • A report by Price Waterhouse Coopers (PWC) warned the Democrats’ health care law has done little to ease the compliance burdens facing employers, and 86 percent of firms surveyed are likely to re-evaluate their overall benefits strategy.
  • A report released by the National Federation of Independent Business (NFIB) showed 75 percent of small businesses that offer health insurance do not believe the law will slow the rise in health care costs, which is one of the main reasons employers stop offering coverage. 

Additionally, the California Employer Health Benefits Survey confirms the failure of the complicated small business health insurance tax credit.  Only 5 percent of California’s small businesses reported they would even consider offering coverage as a result of the tax credit.