Yes, they can stop providing this, and they don't need to offer you *any* increase at all--they are being more generous than required if offering you a small increase. Quite simply:1) The law does not mandate health coverage: employers are free to not offer it, even if in some cases, under the ACA, they may face penalties (they could choose, if they do face a penalty, to pay it rather than provide insurance).2) Employers are free to change compensation or even reduce it at all, unless you have a still-in-effect (unexpired) written employment contract for a defined or set term (e.g. a one-year, two-year, etc. contract) which, by its plain language or provisions, guarantees you certain compensation. Since health care is part of your compensation, this can be changed or reduced at will.3) It doesn't matter how long you had certain benefits or compensation: in the absence of a contract, it may be changed (or reduced) at will.So your employer can take away your health insurance either without any additional compensation or with whatever additional pay/compensation they choose, and your only option is to either accept the change or seek another job.