ACA Provides Key to Job Lock Health Insurance for Some Employers | Mercer US

ACA Provides Key to Job Lock Health Insurance for Some Employers

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ACA Provides Key to Job Lock Good for Some Employers
Calendar10 June 2014

You may recall a flurry in the media last February when the Congressional Budget Office released a report projecting that by 2024 there would be up to 2.5 million fewer full-time equivalent employees in the workforce because of the Affordable Care Act. Although this was seen by opponents of health reform as evidence that the law is a job killer, according to the CBO it was good news, signaling the end of “job lock” – reluctance to leave a job for fear of losing employer-sponsored health insurance. Since that report was released, I’ve been keeping my eye out for real-life stories about people who have left their jobs because they can now get coverage elsewhere, and this report includes three of them. In one story, about a man working in financial services, the phrase that jumps out is “he held on to a recent, unsatisfying job for the insurance benefits.” Most employers would agree that an employee who is only sticking with a job for the benefits is not in the right job. And since it’s likely that some employees in job lock have higher-than-average medical claims, the end of job lock could also have a positive impact on some employers' health benefit cost.


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