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  • Another Study Shows Obamacare Would Dump Americans Into Government-Run Health Care

    We’ve reported before on recent analysis by the Lewin Group, the nation’s most prominent health policy econometrics firm, showing that full implementation of the House health legislation would force 83.4 million Americans out of their current plan and into government-run health care. Now Sageworks, a data analysis firm focused on small business, has also released a study of the bill. Investor’s Business Daily reports:

    The House version would require any employer with a payroll of at least $500,000 a year to provide health insurance or pay a penalty.

    The penalty would start at 2% of payroll and increase with payroll size. The maximum penalty would be 8% of payroll for firms whose annual outlay for wages and salaries is $750,000 or more.

    Experts say even that maximum penalty of 8% of payroll could be such a good deal for employers that they’d rather pay it than buy health insurance for their workers. That would put those workers into a government-run plan.

    But don’t think for a second that these small businesses will be able to create new jobs after dumping their employees into the public plan. IBD continues:

    If the payroll exceeds $500,000, paying the penalty will be a new, added cost of doing business. Small businesses spend 60 cents to 80 cents of every revenue dollar on salaries, Hamilton says.

    The uninsured penalty will add up to 8% of the payroll cost. That could dampen new hiring.

    Even if a company wants to add workers because its business is growing, it might not be worth it if doing so pushes the payroll to the next level, where a higher health benefit penalty would apply.

    Posted in Obamacare [slideshow_deploy]

    11 Responses to Another Study Shows Obamacare Would Dump Americans Into Government-Run Health Care

    1. Pingback: NEXT TEA PARTY: AGAINST OBAMACARE – August 22, 2009 « FactReal

    2. Pingback: » Financial News Update - 08/07/09 NoisyRoom.net: Where liberty dwells, there is my country…

    3. Paule/Houston says:

      Love FEMA? You'll realy love Obamacare

    4. Kathleen Carpenter says:

      Today, I received an automated phone message from my congressman, John Adler of New Jersey. The message was to inform his constituents of a meeting he was holding at the community center from 11 to 12. When did I get this notification? At 20 minutes to 11. Anothr friend called to tell me she had also just gotten the message. She was convinced it was planned that way. With the lively town hall meetings going on all over the country, I think she might be on to something. If you don't want any dissenters to show up, don't tell them about it!

    5. Pingback: Morning Conservative Reading List - August 8, 2009 - AIP Blog - American Issues Project

    6. Lee Longchamp, Avon, says:

      In spite of Presidential denials, this plan, notably the "public option" will lead to Government run health care for Americans.

      Undeniably, President Obama wants a single payer system and this law is the first step in that direction. The Wall Street Journal reports that France, is trying to emulate the current US system.

    7. Bobbie Jay says:

      As the government unfairly and unnecessarily mandates and regulates the private sector, it will for sure close down many insurance companies as the government will make sure the private sector insurance companies won't be able to afford to function. The people won't be able to afford to have it…

      Government mandates and regulations won't be enforced to the government "public plan." Just another way to get rid of the private sector.

      This is why it's not about "competition" it's about government take-over. Government sets the rules for everyone but GOVERNMENT TO FOLLOW!

    8. Debbie in AZ says:

      The insurance companies are strangely quiet. It doesn't seem they are doing any work to change any of the things that are being criticized, such as lack of coverage for pre-existing conditions. So why don't they step up to the plate? Surely this would give people more alternatives than having the government intrude into their lives!

      Maybe the insurance companies want just the rich, so they can charge them very high rates for private care. Maybe that is what they want.

      But you'd think they would come out and try to come up with something better.

      No one is talking about the huge cost illegal immigration has had on our healthcare system. The finger is always pointed at the American Taxpayer.

    9. Debbie in AZ says:

      It's the same system…if they tax you more for National Healthcare out of your pay, then it's the same system, and those who don't work get free healthcare, which they do now. So what changes? If you work, you pay more, but the government will dictate what you get, not an insurance company. So where is the benefit???

    10. Pingback: A reader asks: what will ObamaCare cost me? - AIP Blog - American Issues Project

    11. Pingback: A reader asks: what will ObamaCare cost me? |

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