11/01/2011

30 percent of employers may soon drop health insurance for their employees

Boy, this is a big surprise. NOT. The fee for going through the government insurance is very small compared to what the insurance actually costs, so why not let the taxpayers pick up the tab. So much for the government estimates on how many people would stay on private insurance. Remember these additional costs will blow the budget apart. From Fox News:
Three years before the new health care law takes full effect, a survey of employers has found 30 percent of them are thinking about dropping coverage, in part because most employees will have an alternative -- government-subsidized insurance exchanges.
McKinsey & Company commissioned a survey of 1,329 private sector employers in February and found that three out of 10 respondents who said their companies offered employer-sponsored health insurance said they would "definitely" or "probably" drop coverage in the years following 2014, the year the Affordable Care Act takes full effect.
"The employer knows there's no reason to provide private, expensive coverage if there's free options available from the government," said John Goodman, of the conservative National Center for Policy Analysis in Dallas.
Workers in the exchanges making all the way up to more than $90,000 in income would get generous federal subsidies. For lower-wage workers, the government would pay almost the entire cost of insurance.
"For a $12,000-dollar health insurance plan, if you make about $30,000 a year, the government pays about $11,000 of the premium," Goodman said. . . .

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