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Report: large employers could shift nearly all workers’ health coverage to marketplace by 2020
McClatchy News ^ | May 1, 2014 | BY TONY PUGH

Posted on 05/01/2014 3:04:32 PM PDT by Oldeconomybuyer

A new investor report predicts that Standard & Poor's 500 companies could shift 90 percent of their workforce from job-based health coverage to individual insurance sold on the nation's marketplaces by 2020.

If all U.S. companies with 50 or more employees followed suit, they could collectively save $3.25 trillion through 2025, according to the report by S&P Capital IQ, a division of McGraw Hill Financial.

Standard & Poor's 500 companies could save $689 billion over the same period if they did likewise, the report found. Savings for S&P 500 companies could top $800 billion if health care inflation remains at the traditional 7.5 percent rate over the next decade, the report estimates.

(Excerpt) Read more at mcclatchydc.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: obamacare; rinocare; socialism; tyranny
0bamacare is working as planned.
1 posted on 05/01/2014 3:04:32 PM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

Yep.


2 posted on 05/01/2014 3:05:06 PM PDT by ilgipper
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To: Oldeconomybuyer

Duh, this was the plan all along.


3 posted on 05/01/2014 3:05:06 PM PDT by dfwgator
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To: ilgipper

Companies that keep their own health insurance will have the pick of the best employees.


4 posted on 05/01/2014 3:10:00 PM PDT by GOPJ
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To: Oldeconomybuyer

I’d been living in constant pain. When I was notified I’d be laid off I used my insurance for two extensive foot operations. The doctor was amazing and did a fantastic job. He resectioned bone, reshaped my feet, cleaned out joints...so how much did I pay for this? Out of pocket roughly $100. I’m not complaining, but it’s ridiculous. If you take your car to the dealer you’ll pay $75-95/hour plus parts. I paid the cost of a decent dinner for three in a moderately nice restaurant. I would not at all have minded paying, say, $10,000. But to have these operations without insurance would have cost me much, much more than that.

Funny, the doctor gave me options on where I could have it done and one of them was the hospital. I asked him what the price differences were and he asked, “Why do you care? You’re completely covered.” It turns out the hospital was many times more expensive so I chose the other option.

The fact that the cost is disassociated from the user is bound to run up the price.


5 posted on 05/01/2014 3:13:25 PM PDT by Gen.Blather
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To: Oldeconomybuyer

For decades I felt business should get out of the insurance business. Give employees a hit of money and let them purchase their own insurance. It would actually unleash the free market to provide innovative products. And free business from the burden of providing health care.


6 posted on 05/01/2014 3:16:30 PM PDT by FatherofFive (Islam is evil and must be eradicated)
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To: Oldeconomybuyer

They would be stupid not to. It is far cheaper to pay the penalties than the cost of health care for their employees. Business has always wanted to decouple health care from employment.


7 posted on 05/01/2014 3:22:45 PM PDT by kabar
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To: FatherofFive
Give employees a hit of money and let them purchase their own insurance.

Why give them money when they can get a government subsidy? And it is much more expensive buying insurance as an individual than it is for a corporation can that can do it en masse.

8 posted on 05/01/2014 3:25:27 PM PDT by kabar
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To: Oldeconomybuyer

Absolutely...This was like a big thing for unions to give folks these benefits years ago. They were all planning on Free Health Care for Life....and they’re all getting screwed.


9 posted on 05/01/2014 3:26:46 PM PDT by Sacajaweau
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To: kabar
And it is much more expensive buying insurance as an individual than it is for a corporation can that can do it en masse.

These are artifical savings because of tax law and constraints on the market. If we unleash the free market and introduce competition costs will decline.

The free market always drives costs down and provides better value.

10 posted on 05/01/2014 3:29:27 PM PDT by FatherofFive (Islam is evil and must be eradicated)
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To: FatherofFive

Your going to PO people who own businesses with your crazy freedom talk.


11 posted on 05/01/2014 3:29:49 PM PDT by TurboZamboni (Those who make peaceful revolution impossible will make violent revolution inevitable.-JFK)
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To: TurboZamboni
Your going to PO people who own businesses with your crazy freedom talk.

Decades ago, the CEO of what is now one of the country's largest banks asked me why he should be in the health care business. My head of HR laughed him off. But we need to create a really new system based on free market principles.

12 posted on 05/01/2014 3:37:56 PM PDT by FatherofFive (Islam is evil and must be eradicated)
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To: Oldeconomybuyer

Why wouldn’t they? BO is making it increasing more expensive to provide this benefit and doesn’t want the competition from the government program. Which is why those proposing to “fix it” are fools or worse.


13 posted on 05/01/2014 3:38:20 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: GOPJ

Maybe not. A company that provides health insurance but requires substantial employee contributions to the premiums may not be able to keep these “best employees” if they are young, healthy and not interested in subsidizing their older co-workers.


14 posted on 05/01/2014 4:10:11 PM PDT by Alberta's Child
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To: kabar
Why give them money when they can get a government subsidy?

If they are working for a corporation, they probably make too much money to qualify for a subsidy.

15 posted on 05/01/2014 4:24:02 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: SVTCobra03

LOL. Yeah big corporations pay big money.


16 posted on 05/01/2014 5:27:29 PM PDT by kabar
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To: kabar

They don’t pay slave wages. I worked for a large corporation and was able to retire early and comfortably.


17 posted on 05/01/2014 8:00:58 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Alberta's Child

Most companies can’t afford horrible healthcare for their workers... or their children or wives. Too distracting.

You know Obamacare is going to be as bad as the VA at their worst - and as comforting as Medicaid... it’ll be a horror. What kind of company (other than lowlife stuff) would want that?


18 posted on 05/01/2014 8:02:40 PM PDT by GOPJ
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To: SVTCobra03
It is a generalization based on anecdotal information, Wal-Mart is a big corporation, It employs all kinds of people from minimum wage to executive level salaries. The same holds true for agribusiness.

After adjusting for inflation, men who work full-time in America today make less money than men who worked full-time in America 40 years ago.

It is hard to believe, but 62 percent of all Americans make $20 or less an hour at this point.

Nine of the top ten occupations in the U.S. pay an average wage of less than $35,000 a year.

According to one recent study, 40 percent of all Americans could not come up with $2000 right now even if there was a major emergency

Less than one out of every four Americans has enough money put away to cover six months of expenses if there was a job loss or major emergency.

An astounding 56 percent of all Americans have subprime credit in 2014

19 posted on 05/01/2014 8:44:24 PM PDT by kabar
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To: GOPJ
Most company's like to see their employees do well at work and in their personal lives, but that doesn't mean the employer feels any sense of obligation to meddle in the lives of their employees and adopt a paternalistic attitude about them.

If a worker doesn't like the health care he/she has for themselves or their families, then that should be the worker's problem ... just like it's the worker's problem if they don't like the neighborhood where they live, the worker's problem if they don't like the car they drive, etc.

20 posted on 05/02/2014 5:08:35 AM PDT by Alberta's Child
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To: kabar

That sounds to me like America back in “the good old days.”


21 posted on 05/02/2014 5:09:33 AM PDT by Alberta's Child
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To: SVTCobra03
They don’t pay slave wages. I worked for a large corporation and was able to retire early and comfortably

You are talking of the past. Once big corporations DIDN'T pay slave wages. Today they pimp for intervention into the market for labor by supporting flooding the country will illegals and guest works from third world countries. Even those in once high paying STEM fields now compete with illegals.

Dropping subsidized health care coverage is a de facto decrease in compensation. Free or subsidized health insurance was once a form of untaxed compensation. No more.
22 posted on 05/02/2014 6:33:13 AM PDT by khelus
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To: All

THis is why the cronies WANTED obamacare. The goal is to dump healthcare from their compensation calculations.

(footnote: crony Bloomberg is in damage control mode today. His reputation is garbage.)

Socialized medicine of Obamacare is about keeping citizens as serfs/slaves/thralls.


23 posted on 05/02/2014 6:38:56 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: khelus

Obama the president who brought back slavery.


24 posted on 05/02/2014 6:39:52 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Alberta's Child

I believe you’re thinking about companies that hire lots of low wage employees.


25 posted on 05/02/2014 7:02:49 AM PDT by GOPJ
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To: khelus
Free or subsidized health insurance was once a form of untaxed compensation. No more.

Well, yeah. If it wasn't "free" (whatever that means) and untaxed then employer-paid medical insurance never would have existed in the first place. There's never been a compelling reason for employers to be involved in the business of subsidizing medical insurance coverage for their employees. Conservatives should be thrilled with the idea of completely detaching a person's employment from his or her insurance situation. The days of the company town and the dopey paternalism of corporate America should have ended decades ago.

26 posted on 05/02/2014 5:21:18 PM PDT by Alberta's Child
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To: Oldeconomybuyer

It isn’t a true marketplace in the free market meaning of the word. It’s more like ‘marketplace’ that NPR radio program that twists the free market into a socialist pretzel.


27 posted on 05/04/2014 5:45:48 AM PDT by 1010RD (First, Do No Harm)
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