While the vast majority of employers are rethinking their health benefits strategies in response to the passage of federal health care reform law, only a fraction are considering dropping benefits entirely, a survey by Fidelity Investments has revealed.

In a survey of 459 employers conducted between June 10 and June 30, Boston-based Fidelity's Benefits Consulting group found that 84% of employers are taking a close look at their benefit packages in light of the health care reform law.

But when asked if their organization is seriously thinking about dropping health care benefits, most employers—64%—said they were not, though 20% indicated they were considering no longer offering health care coverage to their employees.

A larger percentage of small employers, defined as those with 500 or fewer employees, than large employers said they were seriously considering eliminating health care coverage—22% vs. 14%.

Instead, 55% of large employers, those with more than 500 employees, said they were considering implementing high-deductible consumer-driven health plans in response to the reform legislation. The percentage of small employers who said they were looking at such plans was 41%.

Employers also expressed concerns about the potential cost of the legislation, with 49% of smaller employers and 25% of larger employers saying they expect it will increase their plan costs significantly in the short term.

“Company executives are taking a close look at their overall benefit strategies in the wake of the new health care reform legislation,” observed Sunit Patel, senior vp of Fidelity's Benefit Consulting business, in a statement.

“There is a lot of confusion out there about the real impact of the health care legislation and the accompanying costs,” he added.