By The Numbers

According to a new study by McKinsey & Company, nearly 30% of companies will drop healthcare insurance for workers when Obamacare begins in 2014. From a Wall Street Journal report:

ObamaCare will lead to a dramatic decline in employer-provided health insurance—with as many as 78 million Americans forced to find other sources of coverage.

This disturbing finding is based on my calculations from a survey by McKinsey & Company. The survey, published this week in the McKinsey Quarterly, found that up to 50% of employers say they will definitely or probably pursue alternatives to their current health-insurance plan in the years after the Patient Protection and Affordable Care Act takes effect in 2014. An estimated 156 million non-elderly Americans get their coverage at work, according to the Employee Benefit Research Institute.

Before the health law passed, the Congressional Budget Office estimated that only nine million to 10 million people, or about 7% of employees who currently get health insurance at work, would switch to government-subsidized insurance. But the McKinsey survey of 1,300 employers across industries, geographies and employer sizes found “that reform will provoke a much greater response” and concludes that the health overhaul law will lead to a “radical restructuring” of job-based health coverage.

Another McKinsey analyst, Alissa Meade, told a meeting of health-insurance executives last November that “something in the range of 80 million to 100 million individuals are going to change coverage categories in the two years” after the insurance mandates take effect in 2014.

In short, contrary to promises you won’t be able to keep the insurance you like, and Obamacare is not going to save the government money – it is going to cost us billions on top of an already dangerous debt.

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2 Responses to By The Numbers

  1. jackhudson says:

    Everytime someone tells us they are going to ‘fix’ healthcare, we end up with higher costs, greater debt, and less quality. The best thing we can do to ‘fix’ healthcare is to free it from the subsidized, regulatory, legal morass it is in now.

  2. Nate says:

    What health care problems?

    Expense? Availability?

    Neither of those issues have ever been solved for anything with government intervention. I will take the truth of past performance over having faith that “this time is different” with regard to government intervention.

    I see clinics popping up at Wal-Mart, that have prices for preventative and routine care that are lower than many peoples insurance co-pays. That’s how it’s done, not mandating everyone have insurance. As the judge in NC(?) said, “If a mandate was the answer you could solve homelessness by mandating everyone buy a house”.

    As surely as poverty has increased since the government declared war on it, health care costs will increase now that war on prices has been declared. Why? You cannot simultaneously increase access and lower costs while doing things that lower the amount of personnel available to provide care. You are going to wind up with access by law, but no care or shitty care in reality.

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