Few Employers Favor Mandatory Healthcare Plans

Many healthcare industry experts and analysts say mandatory healthcare coverage would help thwart the rising bad debt brought on by treating uninsured patients that is plaguing U.S. hospitals operators. But a recent survey by Mercer shows that most employers oppose laws that require them to offer a plan or pay into a fund to provide coverage to the uninsured.  

Only about 23 percent of employers say they support such “pay or play” laws, and the larger the employer, the less likely they are to approve. Among employers with 20,000 or more workers, only 13 percent approve, while 49 percent disapprove, according to the survey released last week.

“Most large, multi-state employers want to retain flexibility and control over their plans and avoid the burdens and complications of complying with numerous state mandates,” said Mercer worldwide partner Blaine Bos in a press release. “Small employers are typically most concerned about the affordability of coverage and even those currently offering a plan may want the option of state insurance pools for their employees.”

To help address the affordability issue, most universal coverage plans offered by the Democratic presidential candidates include provisions to help offset the cost for small business owners. In contrast, the healthcare reform plans offered by the Republican frontrunners uses tax incentives to encourage individuals to purchase coverage. 

Nonetheless, employers surveyed by Mercer also were lukewarm to any mandates that would require individuals to purchase coverage. The survey found that 23 percent of employers approve or strongly approve of this approach, while 48 percent disapprove. 

“You might expect more employer health plan sponsors to favor individual mandates, which could relieve existing employer plans of cost shifting from the uninsured,” Bos said.  “It may be that employers – or at least the individuals responding to the survey – are simply mistrustful of any kind of government-imposed mandate.”

Mercer, a subsidiary of MMC, provides human resources and financial consulting surveys to businesses worldwide. Mercer’s health care survey included private and public employers with 10 or more employees. Nearly 3,000 employers participated in 2007 and results represent more than 90 million full- and part-time employees, according to Mercer.