More than half of American would either switch to a less costly insurance plan, shop around, or drop coverage, if Congress taxes health benefits to raise money as part of the deal to avoid the fiscal cliff. It’s one of many ideas being floated, but the nonpartisan Employee Benefit Research Institute (EBRI) found if employer based coverage becomes taxable:
- 26 % want to switch to a cheaper plan
- 21% say they’d shop directly with insurers
- 9 %t say they’d drop their coverage.
MANY LIKE THEIR COVERAGE
Yet nearly 39% say they would continue with their current level of coverage.
The EBRI found health benefits are a key a factor for workers when they choose a job, and health insurance is the most important employee benefit.
“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.”
Here are 2 additional stats from the study:
- 34% 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.
- 23% prefer their employers give them money and allow them to decide whether to purchase coverage, and how much to spend.