Will the Affordable Care Act (ACA) end “job lock”? Job lock occurs when people stay in jobs they don’t want because they need health insurance and can’t find affordable coverage on their own.
If the ACA makes the cost of individual coverage comparable to coverage under employer plans, how will that affect your labor force?
In 2013, the National Bureau of Economic Research estimated that between 500,000 and 900,000 people might exit the labor market due to the Affordable Care Act. Forty percent of employed workers said they would quit their jobs if they could buy health insurance on their own that compared to their employer’s plan in cost and coverage. More than half (56 percent) of respondents said they had considered leaving their jobs but didn’t want to give up their health insurance.
The survey sponsor, Securian Financial Group, also found that an overwhelming majority of employees (83 percent) were very or somewhat satisfied with their employer’s health plan.
The moral for employers? Employees value their health benefits, and they play an important role in employee retention.
We’d like to hear what you have to say. Feel free to comment below on the concept of “job lock.”