Skip to comments.Employers Drop Insurance Over Obamacare
Posted on 06/12/2011 5:16:27 AM PDT by Kaslin
McKinsey & Co., the high profile global business consulting firm, surveyed 1300 businesses and found that "30 percent of employers will definitely or probably stop offering [employer-sponsored insurance] in the years after 2014."
That's the year that the full impact of ObamaCare is scheduled to kick in. Several other surveys have reached similar conclusions.
Another study found that among businesses with a "high awareness" of what ObamaCare is all about, more than half are planning to drop health care insurance benefits for their workers.
The result spells death to private insurance and life to nationalized healthcare just as conservatives predicted.
ObamaCare requires employers with more than 50 employees to provide insurance for their employees or face a $2000 fine.
Many employers are quick to conclude that they are better off to pay the fine than the escalating premium costs.
AT&T calculated that dropping coverage and paying the penalty will save them $1.8 billion annually.
That makes the decision pretty obvious.
Millions of the workers cut loose will be forced to shop within the government blessed "exchanges" and will be eligible based on income levels for generous taxpayer funded premium subsidies.
Democrats know how to buy votes with taxpayer's money or even worse, with debt. ObamaCare makes subsidies available up to 400% of poverty level income.
The phony budget projections used to sell ObamaCare were based on just 2.5 percent of workers with current employer provided plans to switch not 30 or even 50 percent!
The real resulting impact to the federal treasury will be in the trillions according to former budget officials Douglas Holtz-Eakin and James Capretta.
That's another big budget buster that Obama and the Democrats kept hidden behind the curtain when they rammed the bill through Congress.
The end of employer provided health insurance benefits and consolidation into government controlled programs is a big step toward government controlled single-payer health care which has long been the not-so-subtle objective all along.
Never mind that the we'll be bankrupt when we get there.
Wait until they find out their benefits will drastically plummet and there won’t be enough docs to take care of them...
“We have an opening for an appt with the doctor in 6 months.”
Many Medicare doctors are already not accepting new patients.
“i’m sorry, but you don’t qualify for knee surgery.”
Can you say “Cuba”?
“It is cheaper to pay the penalty than to offer insurance.”
Conservatives read that and see the suicidal path this legislation places us on.
Liberals read that and see how greedy insurance companies and our capitastic system are.
Can’t have universal until you make everyone uninsured.
Conservatives will read that and see how greedy Liberals are.
Actually 100 percent of employers will drop medical insurance when massive inflation kicks in. Companies with ERISA Self-funded plans cannot afford the base cost exposure and the stop loss insurance premiums. Companies with ERISA Fully-insured simply cannot afford the premiums. As a result, everybody will be dumped on ObamaCare, health care will become fully nationalized, and then it will eventually collapse, and I will have achieved my greatest accomplishment.
If that doesn’t get voters to oust congress critter who passed the bill nothing will.No wonder the treat people like sheep.
OK...anyone surprised by this, please raise your hand. The Administration will be around with your next glass of KoolAid, shortly.
This anti-Constitutional plan must be stopped. Quickly. Completely.
The whole purpose of Obamacare is to drive the insurance companies out of business and force a single-payer, government run system.
Has anyone read or heard of anything forceful that hopefully would disabuse me of this negative gut feeling I'm carrying around?
My plan's working so well I've got time for a cheeky round of golf!
I fully expect my company to do this, and my current health insurance which started on Jan 1 of this year is a complete joke, so I expect that in 2014 it will be even a bigger joke.
Yep, a scheme known from the beginning. Obama knows companies will ditch their insurance and pay the fine which is cheaper.
I now effectively have catastrophic health care, thanks to Obamacare. Soon, I doubt if I will have any insurance at all And this is from a large, self-insured company which at one time had excellent benefits.
The good news is that this has turned the younger people here into Republicans. Many liberals can actually read, and virtually none blame “the man”, they blame the “O”.
One of the many lies used to sell Obamacare was “If you like your insurance, you can keep it.” Of course, most people fail to realize that since they don’t purchase their insurance, they don’t get to make that decision. Their employer does. It also requires that the insurance company can stay in business, and continue to offer your policy.
Of course once all employers drop their insurance and everyone is forced into the Government program, the fine to employers will go up from the current $2000.00 fine to the point where current rates will seem like a bargain.
“The whole purpose of Obamacare is to drive the insurance companies out of business and force a single-payer, government run system.”
No - it is collusion between the Insurance Companies and the government. AKA, fascism.
At this point, I would be unsuprised to hear that they had discovered a wonderful new product, Zyklon-B.
Dictator King Obama, being of sick mind, will raise the fine to $100,000. There is no stopping a dictator. He needs more money for his vacations.
I'm sorry, but the GOP has betrayed us. According to a Howell Raines article (keep in mind he's a former editor-in-chief of The New York Times who was put over the side in a notorious reporting scandal, so consider the source) that appeared in Conde Nast Portfolio during its brief publishing career in October 2008, the deal to dump employee health care was already cooked then between Republican policy deepthinkers (they really don't have any -- they're just order-takers for the Chamber of Commerce) and the double-domed Deep Think policy wonks in the upper reaches of the Democratic Party.
If what Raines wrote is true, then John Boehner is deliberately slow-walking any attempt to take out ObamaCare, in order to let the events in this article overtake American voters and let the Democrats have their way.
Because that's what the Republican National Committee wants, too. Because that's what the Chamber types want. And therefore that is the highest desideratum in the GOP. And we're screwed.
Voters? Eff 'em. Money talks.