Employers likely to keep offering health insurance under healthcare reform law, report says

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Employee-sponsored insurance (ESI) will largely stay in place under the Affordable Care Act, though factors such as states' individual insurance exchanges will affect employers' decisions, a new report says.

Employers will likely only drop ESI only if most of an organization's workers find state insurance exchanges more affordable, according to researchers at the Robert Wood Johnson Foundation.

Recent research has shown that ESI plays an important role in turnover among nursing home workers, and opponents of the ACA have argued that the law will make providing health insurance too expensive for long-term care operators.

“With or without the ACA, employers provide benefits to employees to the extent that the labor market demands, and to the extent that costs—when combined with wages—do not exceed employees' worth to the firm,” the report states.

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