Employer-Provided Health Insurance Will Be Dead in Five Years, Analyst Says

As of now, a little more than half of Americans have health insurance through their employer. In recent decades, this number has been on the decline. As healthcare costs continue to rise, fewer employers are willing to provide healthcare coverage. However, that decline could increase significantly in coming years, due to ramifications of the Affordable Care Act.

Obamacare, passed three years ago, includes a mandate for health insurance marketplaces known as exchanges. These exchanges will give individuals the ability to shop for health insurance plans. If an individual has a low income, the government will provide aid.

"On the consumer side, I think we're going to see a lot more people go to exchanges, private or public," notes Brad Weinberg, physician and creator of Blueprint Health. "People are going to be willing to take a lot of risk, and in five to ten years, most employers will get out of the insurance game. Most benefit managers don't want to promote that."

That being said, many still believe that employer-sponsored health insurance will stay around for a long time. According to the Congressional Budget Office (a non-partisan group), only a small number of companies will end coverage for their employees.

There are two good reasons for companies to sponsor employee healthcare plans. In addition to health insurance sponsorship tax benefits, companies are penalized if employees don't earn enough to purchase their own health insurance plan.