As controversy continues to brew over the validity of a McKinsey survey finding 30% of respondents would likely drop employee health care coverage in the years following the implementation of health reform’s state exchanges, a survey on the same topic from Lockton reveals a more conservative estimate: nearly one in five employers (18%) say they will consider terminating group coverage.

Overall, 80% of employers responding to Lockton Benefit Group's May 2011 Lockton Employer Health Reform Survey are concerned or very concerned about the potential impact of the Patient Protection and Affordable Care Act. Most plan sponsors express frustration that the law makes health plan administration even more difficult. The law "created a lot of administrative burdens to employers,” notes one survey respondent. It has “confused employees and increased cost substantially.”

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