Industry News

On March 14, 2019, the Employee Benefit Research Institute (EBRI) released its issue brief, What Does the Future Hold for the Employment-Based Health Benefits System?  The study evaluates the potential impact of legislative proposals and regulatory actions that may affect the future of employment health benefits.

According to the EBRI, the current employment-based health benefits system is the most common form of U.S. health care coverage, which covered 167 million people under age 65 in 2017. From 2013 to 2017, there has been an increase in such benefits among workers and dependents likely due to the increase in the percentage of employers offering health benefits.  This may be the result of the strengthening economy, lower unemployment rates, and relatively low premium increases.

Some of the public policies related to the Cadillac tax; Medicare-for-all; proposals that allow health insurance to be purchased in the individual market using employer funding; and other market developments may significantly impact employment health benefits. The report concludes, “Thoughtful consideration of policy proposals to expand the number of people with health insurance coverage should not only evaluate their effectiveness in addressing health care costs, quality, and coverage.  Policy makers should consider the impact on the voluntary, market-driven, employment-based system.”

The report is available here.