More evidence this week that ObamaCare means the end of health insurance as we know it: “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.” That’s the lead in a Wall Street Journal; you can find more at this McKinsey website.
Among the points you’ll find there:
- The more an employer knows about ObamaCare now, the more likely it is to end its health insurance plan;
- At least 30 percent of employers would come out ahead financially by dropping insurance;
- Most employers will make some sort of change in their health insurance plans as a result of the law;
- The Affordable Care Act (ACA) “minimizes the moral obligation employers may feel to cover the sickest employees, who would otherwise be denied coverage in today’s individual health insurance market.”
There are some possible upsides: “Employees will inevitably become more involved with their insurance choices, while the employer’s role will change from insurance plan sponsor to facilitator of employees’ choices.”
In addition, moving away from employer-sponsored insurance isn’t necessarily a bad thing. Whatever benefits such an arrangement brings, it also makes a person’s insurance highly tied to whatever his or her HR department decides is best for the “average” employee.
Grace Marie Turner, president of the Galen Institute, offers a commentary on the report. She notes that the subsidies offered by ObamaCare–to people with incomes up to $88,000 per year–will add to the federal government’s fiscal woes: “The massive shift of health costs to taxpayers thanks to the disruption of employer-sponsored health insurance will add further to the burgeoning federal budget deficit.”
That, in turn, is bad not only for the nation’s fiscal health, but quite possibly for the nation’s physical health. Fiscal pressures could easily lead to increased use of rationing by federal bureaucracies, such as the IPAB.