Why do employers continue to pay for health insurance?

[riderinthestorm]

46. Personally, I believe the provision that mandates insurers take every applicant is the key

Before, when many potential employees were seeking a job, benefits were instrumental in luring talent to a firm.

Then we saw reductions in benefits become the new norm (no more pensions - go to 401ks etc. )

Then we saw the economy crash and many jobs became part time, no bennies (or no job at all).

So into this mess we have the perfect storm: ACA requires that insurers take ALL applicants regardless of PECs. So employers are evaluating whether offering health insurance is even a perk worth offering since everyone has to get it anyway, its not some (increasingly rare and valuable) thing.

Weighing whether the penalty is less than the actual policy cost for that employee is simply math for many corporations. They have no moral imperative to their employees and will simply use accounting to make the decision. Especially in this day and age of ever-increasing insurance premiums, many employers will grab onto a fixed $3k penalty instead of trying to hold on to a rapidly changing, hassle-filled, expensive "perk" that really isn't such a perk anymore (since everyone has it).