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Employers Express Doubts About Employer Mandate and Government-Sponsored Public Plan, Says Aon Consulting Survey
Date:7/20/2009

imbursement to physicians and hospitals, which is significantly lower than private-sector plans," said John Zern, Aon Consulting's U.S. Health & Benefits Practice director. "As a result, the public plan, if passed and depending on the details, could over time diminish enrollment in group health insurance programs administered by private health carriers."

In addition, the survey found the majority of employers are against the following health care proposals:

  • 63 percent of organizations oppose an employer mandate, which would require employers to sponsor group health insurance for their employees or pay into a government fund
  • 76 percent of employers said changes in ERISA preemption -- which would limit or prevent multi-state employers from self funding a consistent nationwide health plan -- would be a significant development that could lead to a re-examination or likely termination of health coverage options
  • The majority of employers ranked changing/limiting the tax treatment of group health coverage sponsored by employers as the least preferred way to finance health care reform.

"These survey results send a message that employers want the flexibility in their employer-sponsored health benefits to do what's best to recruit and retain talent, and these proposed health care changes may not accomplish this goal," said Tom Lerche, Aon Consulting's Health Care Practice leader.

An employer mandate could result in employers needing to modify benefits to meet a government required minimum benefit level. For those organizations that don't provide group coverage, they may be forced to cut staff to replace the extra costs of complying with the employer mandate, Lerche explained.

"Changes in ERISA preemption would cause substantial problems for the administration of group medical plans for multi-state employers, as
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SOURCE Aon Corporation
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