Nearly 10% of employers to drop health benefits, survey finds (BLOG)

Nearly 10% of employers anticipate dropping health coverage for their workers in the next three years as medical costs keep rising, accord...

Nearly 10% of employers anticipate dropping health coverage for their workers in the next three years as medical costs keep rising, according to a new survey by consulting firm Deloitte.

The vast majority of companies, 81%, said they plan to continue providing health benefits even as new rules begin in 2014 under the Affordable Care Act. An additional 10% of employers said they weren't sure, the survey said.

More than 160 million Americans get their healthcare through employer-sponsored plans. The average cost for healthcare benefits increased 9% last year, while average wages grew 2.1%, according to the Kaiser Family Foundation & Health Research Educational Trust.

In response to those trends, more employers are exploring new ways to provide health benefits. Some are looking into defined-contribution plans where they give workers a fixed amount of money, akin to a 401(k) plan, and allow them to buy their own insurance on the open market or in a private exchange.

Other companies are interested in direct contracting with hospitals and large physician groups in hopes of striking a better deal.

When asked about what's driving up medical costs, the employers surveyed put hospitals at the top of the list, followed by inefficiencies and unhealthy lifestyles.

Nearly two-thirds of employers, or 64%, gave the U.S. healthcare system a C or lower on performance.

The Deloitte survey included 560 randomly selected employers with 50 or more workers that were offering health benefits.