Tuesday, June 7, 2011

30% of Companies Plan to Cut Healthcare as Obama Reform Starts

Three in ten employers will abandon offering health coverage to their employees when President Barack Obama's Affordable Care Act takes effect in 2014according to a survey published by McKinsey Quarterly.
While only 7 percent of employees will be forced to switch to subsidized-exchange programs30 percent of companies say they will "definitely or probably" stop offering employer-sponsored coverageaccording to the study published by McKinsey Quarterly.
"At least 30 percent of employers would gain economically from dropping coverageeven if they completely compensated employees for the change through other benefit offerings or higher salaries" the study saysaccording to Market Watch.
That doesn't mean too many people are going to quit due to health coverage issuesthe study adds.
"Contrary to what employers assumemore than 85 percent of employees would remain at their jobs even if their employers stopped offering [employer-sponsored insurance]although about 60 percent would expect increased compensation."
As the 2012 presidential elections approachpotential and confirmed Republican contenders are vowing to repeal the so-called Obamacareincluding former Speaker of the House Newt Gingrich.
"In addition to the unconstitutional nature of individual and employer mandateswe are learning that they simply don't work" Gingrich saysaccording to CNN.
Such measures require the government to specify exactly what coverage must be included in insurance for it to qualifyGingrich adds.
"The resulting costs to the taxpayer — and strain on the budget — lead the government to try and control healthcare costs by limiting healthcare services. The inevitable result is rationing by a namelessfacelessunaccountable board of government bureaucrats."
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