Healthcare Reform's Impact on Employer-Sponsored Insurance

The federal and state health insurance exchanges, while generating a great amount of attention and controversy, still only represent a small fraction of the marketplace.

But will it stay this way? Will the new rules and incentives embodied in the Affordable Care Act— especially after the employer mandate is fully put into place—cause significant changes in the use of employerbased group health insurance for this population? In the short run, my answer to this second question is no. But in the longer run, there is greater potential for erosion from employer-sponsored insurance, depending on how firms themselves respond to the subsidies available on the exchanges for low-wage workers.

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Source: Wharton School