Mercer Survey Shows Employers Would Cut Benefits to Avoid Excise Tax

Mercer surveyed 465 employer health plan sponsors to find out how they would respond to the excise tax portions of the proposed health reform legislation. Major findings included:

63% indicated they would cut benefits to avoid paying the excise tax. 23% indicated they would pass the tax on to their employees.

75% of those that would cut benefits would do so by increasing employee deductibles and copayments.

52% of all respondents (small, medium & large employers) favor an individual mandate. 65% of large employers (5,000+ employees) favor an individual mandate.

Click here to get more detailed survey results.