Wednesday, June 08, 2011

Two Out of Three Ain't Bad?

Many Employers May Drop Health Coverage After Overhaul, Report Says (WSJ-sub req):

A report by McKinsey & Co. has found that 30% of employers are likely to stop offering workers health insurance after the bulk of the Obama administration's health overhaul takes effect in 2014.

The findings come as a growing number of employers are seeking waivers from an early provision in the overhaul that requires them to enrich their benefits this year. At the end of April, the administration had granted 1,372 employers, unions and insurance companies one-year exemptions from the law's requirement that they not cap annual benefit payouts below $750,000 per person a year.

But the law doesn't allow for such waivers starting in 2014, leaving all those entities—and other employers whose plans don't meet a slate of new requirements—to change their offerings or drop coverage.

Previous research has suggested the number of employers who opt to drop coverage altogether in 2014 would be minimal.

But the McKinsey study predicts a more dramatic shift from employer-sponsored health plans once the new marketplace takes effect. Starting in 2014, all but the smallest employers will be required to provide insurance or pay a fine, while most Americans will have to carry coverage or pay a different fine. Lower earners will get subsidies to help them pay for plans.

In surveying 1,300 employers earlier this year, McKinsey found that 30% said they would "definitely or probably" stop offering employer coverage in the years after 2014. That figure increased to more than 50% among employers with a high awareness of the overhaul law.

So you will get to keep your doctor and your plan. Well, you will as long as you're not one of the 30%--maybe 50%--of Americans who find themselves kicked to the government plan curb by your companies. Now the Obamapologists will tell you this isn’t the dear president’s fault. Nope, he fully intended for y’all to keep your doctors and your plans. But it was those scheming corporations, those nefarious insurance companies, and, just for good measure, those greedy rich people who don’t want to pay their fair share. They were the ones who destroyed the Obamacare dream of everyone being able to keep the status quo if they so desired.

In reality, this is exactly what the intent of the Obamacare overhaul was in the first place. Incentivize companies to dump people on the government rolls and eventually destroy the market for private health insurance entirely. Then, we’ll all be on one big happy plan: the government plan. Don’t count on your doctor being around anymore though.