3 in 10 companies will drop health insurance coverage once Obamacare takes effect
Don't let it be said that we didn't warn you America:
Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows.
While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will "definitely or probably" stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly.
The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.
"At least 30% of employers would gain economically from dropping coverage, even if they completely compensated employees for the change through other benefit offerings or higher salaries," the study says.
The White House points out that this study is at odds with other surveys from the CBO, the Rand Corporation, and the Urban Institute. But what is significant here is that the more a company CEO knows about Obamacare, the more likely he is to drop coverage. The could mean the 30% number will go up the closer we get to 2014 and Obamacare's provisions taking effect.