Fix Health Care Policy

Obamacare Falls Short of Promises to Uninsured

Two new reports out yesterday continue to knock down President Obama’s promises about Obamacare: his “If you like your plan, you can keep it,” and the promise to significantly shrink the ranks of the uninsured.

According to a new study from consulting firm Deloitte, almost one of out of 10 employers said they are going to drop coverage for their employees because of Obamacare, while another 10 percent said they “remain unsure” about what they are going to do. As the vast majority of Americans have health insurance through their workplaces, this is a huge blow.

Yesterday the Congressional Budget Office (CBO) dealt another blow with its updated outlook on the health care law, as it attempted to integrate the Supreme Court’s ruling into its projections.

Although Obamacare spends more than $1 trillion to get people covered, CBO predicts it will still leave 30 million Americans uninsured, falling far short of what was promised.

CBO’s announcement said that Obamacare could cost less than originally projected—but the reason for the drop was that fewer people will be covered.

Read the rest on The Foundry…

Tags: $1 trillion, deficits, drop coverage, employers, ObamaCare, repeal the law, Supreme Court ruling, uninsured

Criticism of McKinsey Survey on Employer Health Coverage Falls Short

The recent McKinsey survey showing that 30 percent of employers would drop coverage shouldn’t be controversial. Economists have consistently shown how an employer mandate will negatively affect employment and wages. In fact, even the Congressional Budget Office (CBO) concede such affects.

Answering critics’ calls, McKinsey released the details of its survey three weeks ago, showing that their survey methodology was sound. The survey included a large sample size, representative industries, respondents directly involved in the decision-making process regarding health benefits, and questions/information presented in a neutral manner. Nonetheless, critics—including the White House and Senate Democrats—have continued to vehemently criticize the report, calling it an “outlier.”   (Read the rest on The Foundry…)

Tags: Congressional Budget Office, drop coverage, employers, McKinsey survey, methodology, ObamaCare

Huge Number of Businesses to Drop Health Insurance, Thanks to Obamacare

Experts have warned that Obamacare’s new subsidy program could cause a mass exodus of businesses out of employer-sponsored insurance. New research from McKinsey and Company based on a survey of employers reinforces this concern.

According to their findings, 30 percent of employers said they would definitely or probably stop offering insurance once the law’s main provisions go into effect in 2014. The inclination to dump coverage exceeded 50 percent once employers’ understanding of the law’s effects increased.

Obamacare encourages employers to dump coverage on two fronts. First, several provisions will increase the cost of employer-sponsored insurance (ESI), including new insurance requirements and mandates, and a tax on high-cost health plans. Employers who don’t offer a minimum level of coverage deemed essential by the federal government will face a penalty of $2,000 per worker, but as the authors point out, Obamacare’s other “requirements will increase medical costs for many companies. It’s important to note that the penalty for not offering coverage is set significantly below these costs.”  (Read the rest on The Foundry…)

Tags: drop coverage, employer mandate, high-cost health plans, insurance regulations, McKinsey & Co., ObamaCare

HHS Official Acknowledges Incentives for Employers to Dump Coverage Under Obamacare

One major concern of Obamacare is its huge incentive for businesses to dump employer-sponsored coverage. Recently, the Obama Administration acknowledged that this is likely, though it did so in an attempt to portray it as a positive outcome of its signature legislation. In reality, Americans will experience severe consequences if this effect of the new law comes to fruition.

Under Obamacare, those without government-qualified employer-sponsored insurance will be able to purchase insurance in the new exchanges. The new law creates generous subsidies to make coverage more affordable for low- and middle-income Americans. To qualify for a subsidy, an individual or family must fall between 138 and 400 percent of the federal poverty level. (Read the rest at The Foundry…)

Tags: drop coverage, employers, federal health insurance exchanges, ObamaCare, subsidies