Survey: 5.6 percent of Iowa employers plan to drop health coverage

The percentage of Iowa employers planning to drop employee health insurance when key provisions of the federal health care reform law takes effect in 2014 is  lower than nationwide, a new survey suggests.

The 2011 Iowa Employer Benefits Survey found 5.6 percent of Iowa employers are "somewhat unlikely" or "very unlikely" to continue coverage. The result compares to nationwide survey findings that indicate 8 percent to 30 percent of employers plan to drop health coverage.

Almost two-thirds of the Iowa employers thought their group health plan costs will increase because of the health reform law, one likely motivation for dropping the plans.

The survey drew on 958 responses from 3,477 randomly selected Iowa employers with two or more employees.  It was conducted in the late spring and early summer by David P. Lind & Associates, a Clive-based health benefits consultant.

Read more at Business380.com