CBO Changes Estimate for Employers Dropping Coverage

The Congressional Budget Office (CBO) released a report this week, estimating the potential impact of Obamacare / ACA on our nation’s budget across the next 10 years. While much of the media attention has focused on ostensibly 20% lower price tag, one key finding stood out to us at Benefitter.

For the first time since the ACA launched, the CBO significantly increased its estimate (by 25%) for how many workers will lose employer-sponsored insurance (also known as ESI or group insurance), due to employers dropping coverage. The graph below shows the CBO’s prediction for the year 2021, across their 5 most recent forecasts.

Employees losing group insurance by 2021 (in millions) – Recent CBO forecasts 

CBO 2021_v2

 CBO Forecast Date

The CBO’s budget forecasts for the last few years can be found here.

At Benefitter, we believe that the erosion of employer-sponsored insurance may actually be a good thing for employers and employees alike. For more information, please visit www.benefitter.com

About us

Benefitter provides software and services to help employers make a positive, profitable and deliberate transition to the new era of health benefits; an era defined by individual empowerment. Moving from group insurance to the individual market can be a win-win for employees and employers alike. But a change of that magnitude can be intimidating; everyone has questions. Benefitter produces answers and a path to legally compliant implementation.