A survey reveals that at least 30% of companies will now cease to offer employer-supplied health insurance after the President Barack Obama signs the health care law to let it come into effect. According to the study published in McKinsey quarterly, only 7% of employees will be forced to switch to the subsidized exchange programs, also at the same time it mentioned that nearly one-third of employees even agreed not to offer coverage to the employees.

The survey that considered some 1,300 employers said that those firms that are aware of “Obamacare” measure are more likely to consider alternatives to employer-offered plans. The report very much highlighted that overall,
30% of employers will possibly stop offering employer-sponsored insurance (ESI) in the years after 2014. The report also said that at least 30% of employers would gain economically from dropping coverage even if they completely compensated employees for the change through other benefit offerings or higher salaries.

The study also said that the number of health competitors would also emerge in the market once the law’s provisions begin to take effect after the approval from President Barack Obama. So it is now very much clear that with the provisions of the Affordable Care Act likely to get through during 2014, at least three of 10 employers will probably stop offering health coverage to its employees, as told by the survey.