New study predicts few employers will drop coverage due to healthcare law

{mosads}Republicans had jumped on the McKinsey forecast to argue that the law violates President Obama’s pledge that people who like their insurance will be allowed to keep it, a powerful talking point going into the presidential campaign. Democrats shot back with criticism of the study and are demanding that McKinsey explain its methodology.

The Avalere study did however caution that “while near-term changes in aggregate ESI rates are unlikely, longer term erosion — over 10 to 20 years — is possible,” especially if the state insurance exchanges called for in the law prove to be a better value than employer-sponsored coverage. Also, the report cautioned that low-wage workers, small businesses and those with early retirees in particular are likely to turn to the exchanges for their coverage.