Will Companies Drop Health Insurance? 
Some will and some wo n't . Employer 's offer health insurance and other benefits to attract and retain quality employees , reduce turnover and to reduce absenteeism . Also , many employer 's feel a moral obligation to offer health insurance and employer sponsored health insurance is a deductible business expense so it does offer tax advantages . That said , with the introduction of the health insurance marketplaces and advanced premium tax subsidies for individual health insurance under Obamacare , these have added a new consideration for some employers . Depending upon the overall income levels of a particular employer 's workforce -LRB- a business with a lot of low to moderate income employees -RRB- it is possible that offering group health insurance could now be a disadvantage to many employees . This is because they may qualify for premium subsidies in the government marketplaces that actually make the cost of insurance less for them than having it provided by their employer . This is a very complicated issue that has a unique answer for each employer . If you would like an analysis of whether offering or continuing to offer group health insurance is right for your workforce please feel free to contact me . 