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Forecast For Health Insurers Not So Cloudy After All

Prescriptions - Making Sense of the Health Care Debate

January 27, 2011, 11:11 am

By REED ABELSON

One of the major concerns about the new health care law is whether it will usher in the demise of employer-based coverage, which is the source of insurance for the bulk of working Americans today.

A new report from Booz & Company, the management consulting firm, suggests that much of the worry that private health insurance will disappear is misplaced.

The report, titled “The Future of Health Insurance: Demise of Employer-Sponsored Coverage Greatly Exaggerated,” argues that while times will be certainly be challenging for the insurance industry, employers are likely to remain a large buyer of coverage for their workers.

“Booz & Company research suggests traditional employer-based insurance will remain a significant market that will erode more slowly and less steeply than commonly thought,” the report says.

You can read the full report here.