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  • What Are the Odds Your Employer Will Drop Health Coverage?

    Since Obamacare was enacted into law, different organizations have come out with different estimates of how many employers will drop health coverage for their employees. This week, the health care consulting firm Deloitte released a new survey that found that around 10 percent of employers would drop coverage and send their employees into the new government-run exchanges.

    Although still ominous, Deloitte’s results significantly differ from previous studies by other organizations. Here are a few of the prominent examples:

    • Congressional Budget Office (CBO). The CBO published an entire report dedicated to estimating the loss of employer-sponsored insurance (ESI). Attempting to model employer behavior, its low-end projection was that 5 million people will lose ESI. Under a different scenario, as many as 20 million fewer Americans could have ESI by 2019.
    • McKinsey and Company. McKinsey, another consulting firm, found that “30 percent of employers will definitely or probably stop offering ESI in the years after 2014.”
    • American Action Forum. Douglas Holtz-Eakin, former CBO director and president of the American Action Forum, estimated that Obamacare “provides strong incentives for employers—with the agreement of their employees—to drop employer-sponsored health insurance for as many as 35 million Americans.”

    While these results may vary in severity, they all mean that, to some degree, Obamacare will cause Americans to lose their current health care coverage.

    The reason employers will drop coverage under Obamacare but didn’t before is that Obamacare creates a place for employees to get coverage outside of the employer. McKinsey explains the change:

    [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.

    However, this unintended consequence isn’t frowned upon by the pushers of Obamacare. When asked about the results of the McKinsey study, House minority leader and Obamacare advocate Nancy Pelosi (D–CA) said that “the way we see it is an innovative prevention-oriented way for businesses to be emancipated from health care costs because they have a way out or whatever works for them.”

    Providing incentives for employers to dump their employees into the exchanges is simply shifting the cost burden to taxpayers. As more people enter the government-subsidized exchanges, the higher costs will be paid for with more tax dollars.

    Whatever the employer-dumping study du jour says, it’s not good for Americans who want to keep their employer-sponsored coverage in the new Obamacare era.

    Posted in Featured, Obamacare [slideshow_deploy]

    13 Responses to What Are the Odds Your Employer Will Drop Health Coverage?

    1. I value my right to be royally screwed by insurance companies, and their absurd overhead, to be the highest of American ideals. We should be making as much profit as possible off of human suffering, misery and disease. Non-profits have no role in health care, never have, and never will. Except of course, all those systems and hospitals they run. And the indigent they pay for under the current system. But, getting free care at the E.R. is the most profitable way to run the system, having people take personal responsibility for their treatment….that is Unamerican now that it's no longer Heritage's idea. Children, the elderly, and the unemployed….they deserve to go broke or die when they get sick…it's that simple. What Jesus would want.

      • Bobbie says:

        Frustrated Mr. Simmons? that's too bad! Me too! Government controlling you shouldn't be your refuge! Jesus knows your alive because you have the strength and the mind to survive. He doesn't want people in government controlling any part of your life. You govern your own through your personal resources. It's called freedom! When there's times of trouble, America shows the good will and nature through her people working together to help each other without government force. Strangers help. Families, churches, charities. America has developed charities for conditions people may struggle with and to help people gain or regain their independence. There are churches that help people get help at the expense of those who contribute by freedom of choice. Not government who expenses tax payers without consent to where the money goes. Who make up government rules, regulations that is more costly at no benefit to the cause!

        Nobody asked for help from government control and the government knows Jesus stand on personal freedom that this government is by all acts taking away! America is free and Jesus or not, people have to open their minds to live free. Jesus is the greatest Teacher on inner strength, self reliance and personal dignity that many an average person learns but if you don't like Jesus, you were given life and the mind to figure out how to live free, regardless.

        We all have our issues, don't we? I've been relatively self reliant all my life and during, diagnosed with an abusively costly condition and fighting over the cost of ALL medicines that sustain life (for many years.) The people in government promised to have those costs reduced! Years, Mr. Simmons. The cost of my medicines and taxes is putting us under because of government only! Tripled under Obama alone! Once government is brought in, all matters are corruptible at a cost that doesn't go to the cause but to the special interests of government!

        What's government ties to non profit if the people running the organization make any money or over minimum wage? I'm talking just the ones with government ties that tax money pays for!

        What's profit that's not personal? "profit" has become a misleading term as absolute but profit in the private sector isn't our business or the role of government to exploit!

    2. Millions to lose health insurance benefits at work thanks to Obamacare.

    3. Lauren says:

      This country's really going hell under him and his admin. That's precisely what they want. God help us all!

    4. Bob from Texas says:

      You refer to this as an 'unintended consequence', I believe this is exactly what Obama-Reid-Pelosi intended to happen. In fact, they are probably disappointed the number isn't higher.

    5. N Waff says:

      if shifting to the goverrnment healthcare reduces employers costs, I can't imagine companies NOT pursuing this option.

    6. @ReformedRep says:

      Alyene, the recent study claiimed 10% of employers would drop coverage. In the cross tabs that is mostly smaller companies and equates to 3% of employees or 4-5M…

    7. George says:

      Well, I can guarantee my company will drop coverage, I mean Brian Roberts is practically in the presidents pocket when it comes to Obamacare. The only thing he didn't do was don the cheerleader outfit, pom poms and all and give it a RAH RAH!!

    8. Lloyd Scallan says:

      When will the American people realize this is the result of Obama overall plan to force everyone into
      a full government controled healthcare system. If the people just take time to listen, this fact was disgussed during the debate over ObamaCare. But Obama has again used the short-memory of the American people to again confuse and deceive what is true intentions are. If we just listen to Obama and his lackeys in the Democrat Party, they tell us what they will do. We just don't, or refuse to believe this could happen in this country. Well wake-up, it's happening.


      Mitt Romney made a good point when he praised Israel's socialist health care program for providing good health care for everyone, and costing less than half of the GDP% Americans pay.
      That and statistics showing Canada's single-payer health-care system results in Canadians living an average of 3 years longer than Americans, it's no wonder so many in the U.S. want to dump "Obamacare," and have Medicare for all.
      I'll take those extra 3 years for me and my family and friends in a second.

      • I beg to differ a tad. Americans live shorter lives primarily because we, collectively, are a bunch of obese fat arses. The health care system has little to do with life expectancy, but the lifestyle of a majority of Americans has a direct correlation to a shorter life span….

    10. samantha says:

      I hope all the people who have gone trough this lose would be refunded all the money which they have invested in the policy before? http://www.medicaremichigan.com/

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