The survey took responses from 502 private-sector companies in the United States, and roughly 12 percent of those respondents said they would be very or somewhat likely to drop the coverage.
Many companies are worried that healthcare reform provisions will either fail to slow the increase in healthcare costs or will make the cost trends worse. A total of 51 percent think that costs will increase more rapidly due to the PPACA.
However, a paper written by Amy Monahan, JD, and Daniel Schwarcz, JD, of the University of Minnesota Law School contradicts the survey’s findings. The authors noted that the PPACA could lead many employers to dump their high-risk employees into the public health insurance exchanges, which could then lead to employers increasing premiums and lowering coverage rates.
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