Dropping health coverage could have tax, morale implications

Providing health care can be costly for small firms, but there are factors to consider before dropping coverage. Eliminating coverage could alter your tax burden, and it could have a negative effect on employees’ morale, experts say. “To go to your employees and say we’re throwing you out into the Wild West, go out and find your own coverage … may not go over well, especially [among] older employees and those who will get zero subsidy,” said Hugo Sibrian, CEO of Benefits & Risk Solutions. Bloomberg Businessweek (5/8)