We-Have-to-Pass-it-to-Find-Out-What’s-in-it Fact of the Day
[A McKinsey survey] of over 1,300 employers across the country, and found that “30 percent of employers will definitely or probably stop offering [employer-sponsored insurance] in the years after 2014.” Among those with a “high awareness of reform,” more than 50 percent will do so.
McKinsey’s numbers jibe with those of the progressive Urban Institute, which recently published a study fearing that “droves of employees—potentially tens of millions—are likely to shift out of employer-provided health insurance over the next decade or two, especially as newer firms and their employees find it more profitable [to do so].”
McKinsey & Co puts the percentage of firms that would be better off dropping coverage at 30%. I’ve also seen figures from another consulting firm that found 40% of its clients would be better off dropping coverage. Both these estimates are probably too low because the consulting firms do not assume firms will reorganize over time to take advantage of the huge disparity in subsidies between employers and the state exchanges. In all likelihood, the Affordable Care Act will lead to a segmentation of the labor market creating low-wage firms that get subsidies and contract out menial service to high-wage firms.
If employees don’t find this unsettling, they are not paying attention.
Obamacare thrives on ignorance.
The more an employer knows about Obamacare, the more likely he is to drop coverage.
This might be a good thing. If more people have to purchase their own insurance, they might start to pay more attention to what’s going on in the health care debate. They might also demand change.
Sounds like to me, employers would come out on top by dropping the employee insurance plans. The last I heard from my benefits package, my employer was out more than the $2,000 for my family coverage.