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An excise tax on generous employee health benefits, like the one proposed in the Senate’s version of healthcare reform, would spur many companies to downsize their health plans, according to a survey of 465 companies conducted by Mercer.

Sixty-three percent say they would reduce the cost of their healthcare packages to below the level that would trigger the excise tax, while 23% say they would share the cost of the tax with their employees. Another 7% say they would terminate their plan.

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