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Consultants say group health insurance not likely to disappear Posted: February 4th, 2011

By Maryalene LaPonsie

Research conducted by U.S. consulting firm Booz & Company indicates half of those insured will still have employer-sponsored group coverage after health reform takes hold. However, the number of those enrolled in employer-sponsored plans will see a 12 percent decline from today's figures.

Five key findings from the Booz & Company report:

  1. 25 million uninsured individuals will find medical coverage after 2016
  2. Of those, 60 percent will enroll in Medicaid, 28 percent will find individual health insurance through exchanges and 12 percent will subscribe to existing employer group plans
  3. Employer-sponsored health insurance will decline from the current 160 million enrollees to 152 million members; market share for these plans will drop from 62 percent to 50 percent
  4. Large companies are less likely to drop their employee health insurance coverage with many citing employee morale and retention as a reason to keep offering benefits
  5. Micro-companies with less than 10 employees are most likely to drop group plans

To complete its report, Booz & Company interviewed more than 150 employers, policy experts and associations, and conducted focus groups and surveys of small and large employers.