Affordable Care Act is Already Boosting Costs
The employer mandate in the Affordable Care Act (ACA) doesn’t take effect until 2104 but the health reform law is already affecting employees. A recent Business Group on Health survey of large employers found that, due to the ACA:
- 70% of respondents must remove lifetime benefit limits; and 40% must remove annual limits on specific benefits.
- More than one-quarter (26%) have to remove annual dollar limits on overall benefits for 2011.
- Half that proportion (13%) have had to remove pre-existing condition exclusions on dependent children.
- Partially because of these changes, the cost of coverage is expected to climb by about 9% — two percentage points more than in 2010.
To combat rising costs, nearly two-thirds of employers in the survey will require workers to pay more of the premiums while nearly half will make employees pay more out-of-pocket.
Effects on access to care are below the fold.
- Nearly 70% of employers are considering dropping retiree drug plans (the Medicare trustees assumes 5.8 million fewer retirees will lose drug coverage by 2016).
- About 86% of employers are considering dropping Medicare Advantage plans for retirees.
- More than half of employers are considering capping employer contributions.
Surprise! The bill is costly.
The only reason this is newsworthy at all is that the mainstream news media has been publishing the White House talking points ever since the bill was passed — conveying the impression that Obama Care is one big free lunch.
The mainstream media is only interested in the benefits of reform. I can’t remember a single article that gives a timeline on the costs.
Rising cost on premium? Not only at work, but individual/family policyholders are also feeling the affect. So much of affordable care. My policy is becoming unaffordable!