Note: This should not be taken as tax or legal advice
The health reform law requires employers (with more than 50 employees) to pay a penalty of $2000 per employee (which is substantially less than what they spend on employee health benefits) if they choose to cancel health coverage after 2014.
- 20% of companies with 10-499 employees plan to cancel their health plans in 2014.
- 6% of large employers (companies with 500+ employees) plan to cancel their health plans in 2014.
It is likely that
100% of small employers (companies with less than 50 employees) will cancel health plans in 2014 because small employers are not subject to a penalty.
Click here to read the full survey release.
