Is Obamacare the end of employer sponsored insurance?

Last month McKinsey and Company issued the results of a survey it had conducted of some 1300 employers concerning what they would do when Obamacare fully took effect in 2014.  Overall 30% of employers said they would drop their group insurance, and, of those who claimed a high awareness of the terms of Obamacare, 50% said they would cancel their coverage.

Of course, McKinsey was villified by the Obamacare supporters, with democrats demanding that McKinsey immediately release all of the details of their survey.  Although not required to do so, McKinsey complied, and, not surprisingly, no one in either the administration or Congress could find fault with either the survey, or the results.

Today, the results of a new survey conducted by the National Federation of Independent Business was published.  This study was done of a cross-section of small businesses that employ 50 or fewer employees.  That number is significant because employers who employ 50 or fewer employees are not subject to the Obamacare “penalty” for failure to provide insurance.

Here is what that survey found:  57% of those surveyed are either very likely or somewhat likely to drop their group plans.  And,

[b]y overwhelming margins, small employers who have some knowledge of the new law think that [Obamacare] will not reduce the rate of health care (insurance) cost increases, will not reduce the administrative burden, will increase taxes, and will add to the federal deficit.

This is not exactly a ringing endorsement.  Nor is it the mind set this economy needs for small business to create jobs.

And, were that not enough, it means that more employees, their spouses and their dependents will be dumped into the insurance exchanges to receive health insurance subsidized by you.

8 replies
  1. steve418r
    steve418r says:

    There is no secret that Obamacare is the beginning of a single payer system that will eventually replace the system we currently enjoy.? Obama’s vision of health care will result in a? life changing event for the rest of us.

  2. PatRiot
    PatRiot says:

    But only if we the people let it happen.
    Ohio residents have sent a petition against Obamacare to their state legislators.
    According to the Constitution, two thirds of the states have to approve?Obamacare for it to be the legal law of America.
    That being said, my comapny is self insured.? There is a staff that negotiates with the medical insurer.? I am sure my company would be interested in saving money by dissolving that department.?
    And seeing as the compnay is regulated by the state DPUC, I am sure the state would step in and press?for this to happen.??In the name of lowering the price of our product for?our customers.
    Speak up now, or only speak when you are told what to say.

    • Lynn
      Lynn says:

      Self insurance is usually a very cost effective way of providing health insurance for employees of most companies. It worked effectively for years at my husband’s company.? The Union demanded a very expensive health insurance plan that literally paid for everything except a $200 deductible and $20 co-pays for everything for all 50 ( in the good years, CT caused the reduction of this number) employees. Obamacare will take care of these options, there will be no options.

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