Media Advisory: Disallowing federal subsidies

Media Advisory: Disallowing federal subsidies

Media Advisory: Mercer survey finds few employers in favor of disallowing ACA federal subsidies

  • March 5, 2015
  • United States, New York

As part of a recent Mercer recent survey of nearly 600 employers yet to be published, respondents were asked whether they would favor or oppose a number of ACA-related changes being discussed, keeping in mind the impact of each change on their organization's health benefit program.  The change with the least backing is the one currently in front of the Supreme Court:  Disallowing federal subsidies for individual coverage in states that don't operate their own exchange.  Only 27% favor this, while 31% oppose (42% say they have no opinion). Repealing the excise tax was the most popular change, with 80% in favor, followed by repealing the employer mandate, with 64% in favor (see attached chart). 

“If the Supreme Court disallows the federal subsidies, the impact will be felt beyond the millions of individuals currently receiving subsidies,” said Tracy Watts, Senior Partner and Mercer’s US Health Reform Leader. “Regulators have been challenged to provide timely guidance on the ACA requirements thus far, and this big of a change would likely take precedence over all else. Employers are still awaiting guidance on many technical issues and need time to plan thoughtful strategies, especially when it comes to the excise tax.”