Today's News / Health

Most workers would seek alternatives if health benefits are taxed

December 20, 2012
KEYWORDS benefits / ebri / employers / health
/ Print / Reprints /
ShareMore
/ Text Size+

If Congress – in its quest to rein in the federal deficit – decides to tax workers’ health benefits, more than half of American workers would either switch to a less costly plan, shop around, or drop coverage, according to new research from the nonpartisan Employee Benefit Research Institute (EBRI).

The 2012 EBRI/MGA Health Confidence Survey (HCS) finds that if current tax preferences were to change and employment-based coverage became taxable to workers, 26 percent would want to switch to a less costly plan, 21 percent say they would want to shop for coverage directly from insurers, and 9 percent say they would want to drop coverage altogether.  However, nearly 4 in 10 (39 percent) individuals say they would continue with their current level of coverage, up 10 percentage points from last year’s HCS findings.

A key factor in choosing a job

While changes resulting from the Patient Protection and Affordable Care Act (PPACA) have raised concerns as to whether employers will continue to offer health coverage in the future, the 2012 HCS finds that health benefits remain a key a factor for workers in choosing a job, and health insurance in particular continues to be—by far—the most important employee benefit to workers.

“Most Americans are satisfied with the health benefits they have now and prefer not to change the mix of benefits and wages,” said Paul Fronstin, director of EBRI’s health Research and Education Program and author of the report. “About three-quarters say they are satisfied with the health benefits they currently receive, while 15 percent say they would trade wages to get more health benefits, and 9 percent say they would surrender health benefits for higher wages.”

Other HCS findings in workers’ opinions of employment-based health insurance:

Overall, individuals are of a mixed mind when it comes to their preferred means of obtaining health insurance. Four in 10 (38 percent) prefer to continue getting coverage as they do today. One-third (34 percent) preferred to choose their insurance plan, have their employers give them the money that was being spent on their behalf, and then pay the remaining amounts themselves. One-quarter (23 percent) prefer that their employers give them the money and allow the workers to decide whether to purchase coverage, and how much to spend.

Choice of health plans is important to workers, and they would like more choices, but most workers expressed confidence that their employers or unions have selected the best available health plan Moreover, they are not as confident in their ability to choose the best available plan if their employers or unions did, in fact, stop offering coverage.

Full results of the 2012 Health Confidence Survey are published in the December 2012 EBRI Notes, “Views on Employment-Based Health Benefits: Findings from the 2012 Health Confidence Survey,” online at www.ebri.org The HCS examines a broad spectrum of health care issues, including Americans’ satisfaction with health care, confidence in the future of the nation’s health care system and the Medicare program, as well as their attitudes toward certain aspects of health care reform.

About the EBRI

The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and sponsors, which includes a broad range of public, private, for-profit and nonprofit organizations. For more information go to www.ebri.org or www.asec.org

Did you enjoy this article? Click here to subscribe to ISHN.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Scenes from the World of Safety

Sights, signs & symbols from the National Safety Congress & Expo held in San Diego, CA, September 15-18

11/4/14 2:00 pm EST

Eye Injuries: You rarely see them coming. Practical Solutions for reducing injuries to the eye.

The 3M Eye Injury Reduction webinar will provide an examination of how to help solve eye injuries in the workplace. This issue continues to challenge virtually every industry, and the solution is often times multifaceted. 3M will share some new tools and approaches to help you in solving this issue.

ISHN Magazine

ISHN JAN 2015 COVER

2015 January

Check out ISHN's first issue of 2015, which features articles about hearing protection as well as the State of the EHS Nation 2015 Survey.

Table Of Contents Subscribe

THE ISHN STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\ISHN\safetyfourth.jpg
Safety Engineering, 4th Edition

A practical, solutions-driven reference, Safety Engineering, 4th edition, has been completely revised and updated to reflect many of today’s issues in safety.

More Products

For Distributors Only - January 2015

FDO JAN 2015 COVER

 

For Distributors Only is ISHN's niche brand standard-sized magazine supplement aimed at an audience of 2,000 U.S. distributors that sell safety products. Circulation only goes to distributors. 

CHECK OUT THE JANUARY 2015 ISSUE OF FDO HERE

STAY CONNECTED

Facebook logo Twitter YouTubeLinkedIn Google + icon

ishn infographics

2012 US workplace deathsCheck out ISHN's new Infographic page! Learn more about worker safety through these interactive images. CLICK HERE to view the page.