Large Employer Cost of ObamaCare
U
ntil now, the mainstream media focus on ObamaCare’s blows has been on individuals and small businesses. But large employers will not avoid the costs of the Affordable Care Act (ACA). According to a new study published by the American Health Policy Institute:
- The cost of the ACA to large U.S. employers (10,000 or more employees) is estimated at $480 to $590 per employee per year, over the next ten years.
- These large employers will see overall ACA-related cost hikes of between $163 million and $200 million per employer, or an increase of 4.3 percent in 2016 and 8.4 percent in 2023 over and above what they would otherwise be spending.
- The total cost of the ACA to all large U.S. employers over the next ten years is estimated at between $151 billion to $186 billion.
“The total cost of the ACA to all large U.S. employers over the next ten years is estimated at between $151 billion to $186 billion”
That sounds like a lot of money. Is that a lot of money, compared to previous programs?
This is also my particular concern.
According to the study, it is:
“Although large employers have increasingly focused on managing their health care spending over the past 10 years, their health care costs per employee have continued to rise an average 1.1 percentage points faster than inflation on an annual basis since 2003”
Wow. That’s a long time for spending to be rising. Especially since employers are trying so hard to cut it.
So why? Inflation?
No, it’s above inflation. My guess would be the rising costs of not having enough quality doctors
Or the increased prices from insurance agencies
But the application for medical schools is increasingly competitive. Some schools keep rejecting many qualified applicants. If there is a shortage of quality doctors, why don’t they accept more students?
“You may be able to change to Marketplace coverage, but you might not qualify for lower costs on your premiums based on your income. This will depend on the type and cost of insurance the employer provides.”
This could be a reason but I am still curious about the increase. The government keeps saying that ACA expects to reduce the employment-based health insurance.
“you may not qualify for lower costs on your monthly premiums and out-of-pocket costs, even if your income would qualify you otherwise.”
Looks like the employment-based healthcare is cheaper.
The exchanges are useless
And no one will be getting their doctor
“$163 million and $200 million per employer”
That is absolutely insane! No wonder employers are dropping their employees back to part time.
Yeah the savings they will see from that, accumulated, will be huge.
“health care costs per employee have continued to rise an average 1.1 percentage points faster than inflation on an annual basis since 2003”
This was even before the ACA, what is contributing to this?
I also notice the year. According to my observation, the price of service-related is continuously increasing for some undetectable reasons.
The reason is probably those who control the prices slowly driving them up
The timing seems great for the Health Matching Insurance through National Prosperity Life and Health
Brokers who advise self funded employers of 200 employees or more can provide a patented product which can lower premiums 60 to 80 percent over 3 to 5 years
And receive fully insured commissions on a self insured product
Contact me at Donaldlevit@aol.com
Don Levit,CLU,ChFC
Principal of NLPH