Dire Predictions About Affordable Care Act's Employer Mandate Appear Inaccurate

By Pat Loeb

PHILADELPHIA (CBS) -- One month into the new year, it appears that a new provision of the Affordable Care Act, known as the employer mandate, is not creating the ripples that were predicted.

The requirement that employers provide their workers with affordable insurance was postponed, and is being phased in, because of predictions it would kill jobs and cut hours. But local business groups and insurers say, so far, that hasn't happened.

"We've actually seen growth in both small and large group customers," says Linda Taylor, chief sales executive for the region's largest insurer, Blue Cross. "We're really encouraged by the number of employers who see the value in offering and maintaining health care for their employees."

This year, large employers with 100 or more full-time or equivalent employees had to offer affordable insurance plans to 70 percent of their workforce. Next year, they'll have to cover 95 percent -- and employers with more than 50 workers will be included in the mandate.

The mandate does not require coverage for part-time employees, but Taylor says her customers haven't changed their policies because of the law.

"There was some concern that a lot of employers would drop coverage," she says. "We certainly haven't seen that. We haven't seen that in Philadelphia and I don't think nationally."