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  • Side Effects: Employees Lose Insurance and Taxpayers get the Bill Under Obamacare

    The House Ways and Means Committee just released a report that shows that the most successful companies would save billions of dollars if they stopped offering coverage to their employees and dumped them into the taxpayer-funded Obamacare exchanges.

    On a confidential basis, 71 Fortune 100 companies supplied information to the committee regarding the cost and coverage of their health insurance plans. The committee used the data to calculate the potential savings of dumping employees into the exchanges and paying the employer mandate penalty.

    The report’s findings will likely scare the many Americans who like their current employer-sponsored insurance. The report concludes that companies could save $28.6 billion in 2014 alone by dumping their employees into the exchanges. Moreover, the savings grow over time: Between 2014 and 2023, dropping health coverage would collectively save these companies $422.4 billion—and that’s after paying the penalty.

    According to the report, in 2011, the average per-employee cost of providing health insurance to these companies was $5,197 after taxes and is expected to increase to $6,487 in 2014. The employer mandate costs only $2,000 per full-time employee. The financial incentive to forgo offering health insurance coverage to employees is obvious and enormous.

    Before Obamacare, individuals without employer-sponsored coverage had few other alternatives, which discouraged mass employer dumping to save money. But under the President’s health law, the conditions have changed. A study by McKinsey and Company explains:

    [Obamacare] reduces the social-equity advantage of employer-sponsored insurance, by enabling these workers to obtain coverage they could not afford on today’s individual market. It also significantly increases the availability of substitutes for employer coverage. As a result, whether to offer [coverage] after 2014 becomes mostly a business decision. Employers will have to balance the need to remain attractive to talented workers with the net economics of providing benefits—taking into consideration all the penalties and tax advantages of offering or not offering any given level of coverage.

    It will simply be a better business move for many employers to pay the fine and dump millions of American workers into the government-run exchanges. McKinsey found that 30 percent will either definitely or probably drop insurance coverage for their workers under Obamacare.

    But subsidized coverage in the Obamacare exchanges isn’t free, as Heritage’s Kathryn Nix has warned before: “As employers drop health plans for their employees, taxpayers will be left to pick up the tremendous cost of offering more and more subsidized coverage in the exchanges. This will drive up the cost of Obamacare and its already-huge impact on deficit spending.” More Americans will be dependent on government, which gives the government more control over health care decisions that should be made by the patient.

    President Obama’s promise that “if you like your health care plan, you’ll be able to keep your health care plan” has been indisputably broken. The American people deserve health care reform that benefits them, not the broken promises of Obamacare.

    Posted in Obamacare [slideshow_deploy]

    21 Responses to Side Effects: Employees Lose Insurance and Taxpayers get the Bill Under Obamacare

    1. Bobbie says:

      Americans don't want exchanges, obamacare or less qualified health care service because of them! It's already cost tremendous damage with extreme corruption! Open the private market without government impositions. People take better care of themselves when they pay their own way!!!! Every corrupt member of government that voted for this piece of crap are waived from obamacare.

      It's plain to see this is cruel and unusual force with outrageous contention, put on America, the people!

      • Pragmatic says:

        And people who opposed Obamacare are taking advantage of it (see Scott Brown). Also, I'm not sure where you're getting your information, but people aren't going to get "less qualified health care". They're going to continue to go to the same doctors as before.

        • Bobbie says:

          my experience gives me WITNESS right up front!! Pragmatic!!! WITH THE DOCTOR I'VE BEEN SEEING OVER 20 YEARS!!!

          • Pragmatic says:

            So, you've been seeing the same doctor for 20 years, which means that you don't have experience with "less qualified health care service" and you're going to be able to see the same doctor under Obamacare. So, yes, I stand by my question. You're just making wild assertions about the consequences with no supporting evidence.

            • Bobbie says:

              that's where your ignorance pronounces you. My doctor applied routine care RELATING TO THE MEDICAL CONDITION I LIVE WITH DAILY, (not brought on by lifestyle or heredity) that in the last years under Obama my visits to the doctor I've been with for over 20 years have tripled, MEDICINES ARE TRIPLED and those routine checks no longer exist by him now handled by costs of make work through GOVERNMENT REGULATIONS! Go ahead and stand by your question? because your assertions are induced by rhetorical assumptions THAT REFUSE YOUR MIND THE FACTS OF SOMEONE ELSES!

              Just because you can keep your doctor doesn't mean he isn't going to be heavily influenced and forced by government bureaucracy and control to maintain a wage!

              Please Pragmatic, sometimes you comment rationally and NOW try to understand people want the rightful personal responsibility to control their own physical and mental health without the middle man intrusion, inefficiencies, wastes, corruption, and costs of government whom doesn't fit into the mix with a definite agenda that does not promote good health or quality service!!! Don't accuse me regarding matters your ignorance feeds you.

    2. John Brewer says:

      This is what is coming to your healthcare…..:(

    3. Dirk Raider says:

      Fear, Uncertainty, Doubt (FUD). This article is like many others at Heritage, has a polical agenda from beginning to end. While there may be grains of truth, much is distorted. What about all those americans who work at jobs w/o health coverage, who by being individual not a group cannot get or cannot afford coverage? I sell health insurance and 90% of those don't end up being able to get a policy. What about all the sad people you read about that are having "fund raiser to help cover medical expenses", or those knuckleheads who use the emergency room as a doctor and then don't pay anything, we all get stuck footing the bill.
      While the healthcare reform bill is not perfect by any means, repealing it would have ramifications be going back to the dark ages something that Senger neglects to point out. Fine tuning the bill would be much better than sticking head in sand and saying the problem didn't exist and we have the best healthcare in the world, etc.

      • Mike A says:

        Don't know anybody saying problems didn't exist prior to Obamacare. We are just saying Obamacare makes the problems worse for everyone, those who have good insurance now because they will more than likely lose it, those who don't have it and don't want it now because they will be forced to buy it and those who don't have it now and want it because everyone else will still be crowding them out of the market.

    4. Joel says:

      Like the '70's statements about computers making our jobs faster easier, then the computers eliminated the jobs. Not wrong, but the wrong assumption. Business will always try to get more for less. This will be the same for taxpayer healthcare. Why pay for it when the employees paid for it?

    5. Our company has already told us that we will be "kicked off" our insurance for Obamacare to save money and that there will be NO choice. They've also told us our premiums will double or perhaps triple after that as well. It's just their way of taking the burden OFF themselves financially and putting it onto us. So much for the phrase "if you like your coverage, you can keep it" which clearly is not an option in my case.

      • Maureen says:

        why and how would your premiums double or triple if they are taking you off the employer sponsored health plans. You will pay a fee on a yearly basis based on your salary. No co-pays, no decductibles to be met, no co-insurance., Id rather pay $1200 a year, than $5600 a year w/o fear of my premiums continually going up, being denied coverage or told that my meds are too expensive and wont be covered, having more money in my paycheck to invest in lets say 401k plans. Affordable health care is health maintenance.

        • EJR says:

          First, because his company is dropping him, he will be forced to go to one of the exchanges to purchase his health insurance – he won't be paying the "fee" or "tax".
          Where do you think the money comes from to allow all of these free copays, no deductible and discounted care? Are you joking? Does it come from a special Obama money tree on the east lawn of the white house? Are the doctors and hospitals going to work for free now? Listen to what you are saying. How could all of these costs magically go down or become free? Please take a moment and think – where is the money coming from? People with your lack of understanding of this law – YOU ARE THE PROBLEM – AND I WILL POINT TO YOU PEOPLE WHEN I TRY TO EXPLAIN TO MY KIDS WHY OUR COUNTRY BECAME GREECE. And Greece is a sideshow compared to what will happen if this country – the owner of the world's currency and the largest economy – goes bankrupt.

          Money for nothing. Explain to the next generation why you people bankrupted this great country.

    6. Mike says:

      If the gaggle of arsonists that is the republiKKKON party would have supported a public option then this would not be a problem. Also you could have forced obama to implement something that, frankly, was set up to get him votes then fail in the legislature. You could have forced him to sign something he never expected to come to his desk and never really wanted in the first place.

      • Scott says:

        Mike, the article was about ObamaCare, not your dislike of Republicans. Adding insults (especially when the KKK was a vastly Democrat group) doesn't enhance your argument.

        First, the Democrats had an unstoppable, filibusterer-proof majority in the Senate AND a majority in the House. If they truly had wanted the Government to take over health care, they could have. Of course, they would have never been elected again, as the majority of the voting populace doesn't WANT that.

        The Republicans were given NO input into the back-room decisions of what went into this bill. So your argument is baseless. Blame your own party.

    7. Kevin says:

      Goverment control and manipulation of heathcare and that of which is a huge chunk of our economy is a disaster on the horizon. Why don't people get this? The whole obmacare "scheme" is about reaching into our pockets to tax anything that has nothing to do with healthcare, AND penalize those who care not to have healthcare. The part of the health premium I pay to get company health care coverage is already seeing the Obamacare effect, and I do NOT like it, More expensive, probably due to the high cost of implementing Obamacare and currently being passed onto those who have healthcare, and now punative cost adders if my wellness physical indicates that I don't meet certain benchmarks for blood pressure, cholesterol, BMI, and if you use tobacco… Repeal and re-do is the ONLY option.

    8. Jon C. says:

      Face a more SIMPLE fact guys – companies who no longer supply Health Care will no longer have EMPLOYEES. Quid Pro Quo – make up all the bogus statistics based on WHAT-IFs (like the world is flat) and talk all you want – but the "Obamacare Exchanges" are STILL PRIVATE INSURANCE COMPANIES! DUH!!!

      • Pragmatic says:

        Unfortunately, with ~10% unemployment people will still go to work for those companies and you can't blame the people for wanting to work given the lack of alternatives

      • Bobbie says:

        anything government interferes with makes it private no more!

    9. easyworld says:

      Ensuring that your family has reliable medical cover is so important!

    10. Ron W. Smith says:

      It's hard to believe there's still back and forth over health care in this richest of all countries after decades of such back and forth. It's especially hard to believe that health care coverage costs Americans twice what it costs per person in most other Western countries–and with no measurable differences in outcomes for the big extra cost, with no portability of coverage for most people when jobs are changed or lost, with exclusions from coverage still rampant because of pre-existing conditions, and with tens of millions left uncovered even so.
      Yes, it's hard to believe in a country that thinks nothing of spending $1,000,000,000,000 a year–more than is spent by the rest of the world combined–on National Security and supporting more than 700 military installations around the world.
      Taxpayer dollars are really at work in America, folks, thanks to those who care more for international adventurism than about the taxpayers. It's just really hard to believe.

    11. Stevieray says:

      My company just annouced they are cutting my health insurance in January of 2013. It's starting to happen people. Wake up!!!!

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