Video: Large companies will get hit with 9% increase in health costs under ObamaCare

posted at 3:35 pm on August 18, 2010 by Ed Morrissey

Douglas Holtz-Eakin discusses a new survey on the impact of ObamaCare on large companies in this clip from Fox News. This survey of employers with five thousand employees shows that executives are planning for a sharp increase in health-care costs, mainly from new mandates in ObamaCare and the lack of control over the actual costs in providing health care. Those costs will get passed to employees in part, but it’s also likely to reduce their impulse to expand jobs in the next couple of years. The former CBO director also predicts that companies will look at shedding their retiree coverage programs, as predicted during the ObamaCare debate — and will end up pushing more people onto Medicare and Medicaid:


Some of these costs were expected, but Democrats argued that the tax breaks in the plan would offset the damage, especially for smaller businesses. The Orange County Register reports on another analysis of the bill that determined that less than half the number of small businesses predicted by ObamaCare advocates will actually qualify:

Fewer than 2 million of the nation’s 6 million companies with employees qualify for the small-business tax credits included in the new health insurance reform law, says the National Federation of Independent Business.

The law’s supporters had projected that twice as many small businesses would qualify for the tax credit. NFIB has joined a lawsuit challenging the constitutionality of the health care law.

An employer with 17 workers and an average wage of $39,000 will not qualify for a tax credit, NFIB says. Also, none of the 23 million-plus self employed Americans can get the tax credit either.

In California, only a third of the state’s employers will wind up qualifying, thanks to the high salary level in the state. That won’t do anything to boost the economy, of course, but instead will give employers more reason to give up insurance benefits altogether. Cost increases that far outstrip inflation cannot be borne without either eliminating the source of the increase, reducing compensation, or raising prices. All of those options spell trouble for California’s economy — and that of the rest of the nation.

Bloomberg also reports on the same survey Holtz-Eakin reviews (h/t DogSoldier):

Workers will pay more for their health care next year as U.S. companies prepare for provisions of the overhaul signed into law by President Barack Obama, according to a survey released today.

About 63 percent of businesses plan to make employees pay a higher percentage of their premium costs in 2011, said the Washington-based National Business Group on Health, which surveyed 72 companies that employ more than 3.7 million people. The survey showed 46 percent plan to raise the maximum level of out-of-pocket costs that workers must bear.

The companies surveyed expect their costs of health-care benefits to rise an average of 8.9 percent next year. The legislation Obama signed in March will contribute an estimated 1 percentage point to the higher expense, Helen Darling, the business group’s president, said at a press conference in Washington today. Employee-paid portions may see small increases, she said.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Feature not a bug.

Holger on August 18, 2010 at 3:37 PM

All part of the plan to eventually arrive at single payer. This just hastens it.

txmomof6 on August 18, 2010 at 3:41 PM

Per The Plan.

Akzed on August 18, 2010 at 3:41 PM

It is impossible to escape the conclusion that 0bama wants to destroy the middle class in this country. But then, that has been a marxist goal for some time now.

tommyboy on August 18, 2010 at 3:42 PM

Those costs will get passed to employees in part, but it’s also likely to reduce their impulse to expand jobs in the next couple of years.

Just another club with which to beat the donkey.

We’re going to have to get some more bags to hold all of these clubs.

That donkey is in for a collassal asswhupping this fall, beaten like a rented mule. The hits just keep coming.

NoDonkey on August 18, 2010 at 3:42 PM

Well I guess Nancy was right…. We had to wait for it to be passed before we know what’s inside it….

sandee on August 18, 2010 at 3:42 PM

Soon I will be at the same doctor office as illegal aliens.

Oil Can on August 18, 2010 at 3:43 PM

Count it!

lorien1973 on August 18, 2010 at 3:45 PM

Soon I will be at the same doctor office as illegal aliens.

Oil Can on August 18, 2010 at 3:43 PM

You wish… Try the same backed up clinic…

sandee on August 18, 2010 at 3:46 PM

Soon I will be at the same doctor office as illegal aliens.

Oil Can on August 18, 2010 at 3:43 PM

The only Doc’s who are going to be around are the liberal Doc’s who think that all you are going to need is a pill. Do you really want to go to the Doc? My conservative Doc has put in his notice. :(

upinak on August 18, 2010 at 3:49 PM

Bending the cost curve.

agmartin on August 18, 2010 at 3:50 PM

If you like your current health care plan, you can keep it…..if you can afford it. Suckers! -BHO

dczombie on August 18, 2010 at 3:50 PM

“I won…oh, and you lose.”

Bishop on August 18, 2010 at 3:54 PM

Count it!

lorien1973 on August 18, 2010 at 3:45 PM

Heh!!!!

……..crr6 redux.

Baxter Greene on August 18, 2010 at 3:55 PM

All part of the plan to eventually arrive at single payer. This just hastens it.

txmomof6 on August 18, 2010 at 3:41 PM

Clearly. But there are two problems with this scheme by the Dems. First, the short-term effect if people’s premiums going up juxtaposed with seniors losing coverage will not win them many votes in 2010 and 2012. Secondly, the vast majority of this country wants no part of single payer. So if/when we wind up with the government taking over the entire health care industry, that will leave the electorate even more PO’d.

Long story less long, the Dems have set themselves up for disaster not just in the midterms but for years to come.

Doughboy on August 18, 2010 at 3:56 PM

upinak on August 18, 2010 at 3:49 PM

Liberal?

There are no liberal arabs or pakistanis and that’s who will be “providing” our medicine in a couple of decades, if Obamacare goes through.

Quacks who went to some sham med school in Uzbekistan or Islamabad, who can’t speak intelligible english.

Rest assured though, our elite masters will still get to see actual physicians.

NoDonkey on August 18, 2010 at 3:56 PM

I’d link to a youtube clip of Gomer saying “Surprize, surprize, surprize!”, but it isn’t really worth the effort, is it?

Vashta.Nerada on August 18, 2010 at 3:57 PM

Anyone listen to Obama this morning in Ohio?

He said….they hoped it would lower costs. That really stuck in my craw. I thought they spouted off for months that this WOULD reduce costs. Now they hope it will?

Proof, this was illconcieved with a more deviant plan behind it. Wait for it..as it’s coming. Single payer!!!

capejasmine on August 18, 2010 at 3:59 PM

NoDonkey on August 18, 2010 at 3:56 PM

Umm is it racists to say that I don’t think I have ever had a indian doctor up here at least? My one Doc is white. My female doc is white. My eye doc is white… my dentist is white.

Am I a racist or just lucky?

upinak on August 18, 2010 at 3:59 PM

Reverse Wealth Distribution: I demand the Unions share their gold-plated health insurance with me.

TN Mom on August 18, 2010 at 3:59 PM

How’s that hopey changey stuff workin out?

davek70 on August 18, 2010 at 4:00 PM

I heard a local conservative radio guy say that whatever your employer contributes for your healthcare, say $5,000 per year, will be added to your taxable income. I thought that was for Cadillac gold-plated healthcare plans but that wasn’t what he was saying. If true, he WILL kill small business and the middle class.

NJ Red on August 18, 2010 at 4:00 PM

average wage of $39,000

The new “rich” in America.

VibrioCocci on August 18, 2010 at 4:01 PM

Get used to this. Portions of the bill were passed with “TBD” placeholders for their cost formulas, so they haven’t even been written yet. I think we’ll be hearing news like this for a good long while yet.

For those worried about crowded clinics, don’t fret, they’re cutting enough from seniors over the next stretch of time that you know those pesky old farts won’t be littering up the waiting areas any more. Plenty of room.

/sarc – in case anyone needs it

martin.hale on August 18, 2010 at 4:02 PM

It is impossible to escape the conclusion that 0bama wants to destroy the middle class in this country. But then, that has been a marxist goal for some time now.

tommyboy on August 18, 2010 at 3:42 PM

IMO, he’s partially sided with those that finally came to the conclusion that reform of the current system was impossible or would take too long.

What you cannot ‘fix’, you break down. Then in that moment of crisis, it’s Kirk and Khan in the Mutara Nebula.

The odds are even.

Of course, that was probably their plan B. Plan A was pushing a bunch of change, having the economy rebound in time for the election and then pushing more ‘change’. But I suppose they will take what they can get.

Asher on August 18, 2010 at 4:02 PM

That donkey is in for a collassal asswhupping this fall, beaten like a rented mule. The hits just keep coming.

NoDonkey on August 18, 2010 at 3:42 PM

That’s what I thought when I read about this and sent it in. Wages are falling and what we are getting paid is slammed with taxes six ways to Sunday.

If you’re in the middle class, you’re gonna be living in a box by March.

dogsoldier on August 18, 2010 at 4:02 PM

Pelosi is so hot to investigate things, where’s the investigation into who financed the support for this POS legislation?

GOP slogan: Back to the Drawing Board.

BuckeyeSam on August 18, 2010 at 4:03 PM

NoDonkey on August 18, 2010 at 3:56 PM

Wait I take that back. I think my Emergency Doc was indian (maybe) but he had been in the U.S. for a long time.

upinak on August 18, 2010 at 4:04 PM

For those worried about crowded clinics, don’t fret, they’re cutting enough from seniors over the next stretch of time that you know those pesky old farts won’t be littering up the waiting areas any more. Plenty of room.
/sarc – in case anyone needs it
martin.hale on August 18, 2010 at 4:02 PM

No sarc tag needed. If this disaster stays in effect it won’t be just Avastin which gets removed from the “We Can’t Afford It” list. People of all ages will be told that the treatment is too expensive so go home and die. Seniors will be first on that list.

Bishop on August 18, 2010 at 4:08 PM

9% bankruptcies? We can do better than that, can’t we?

YES WE CAN!!!

Lily on August 18, 2010 at 4:09 PM

This survey of employers with five thousand employees shows that executives are planning for a sharp increase in health-care costs, mainly from new mandates in ObamaCare and the lack of control over the actual costs in providing health care.

…remember how all the super smart liberals called everybody that opposed the lies like these about the Health Care Bill were labeled “stupid racist”…..


…..just like the people that oppose building a Mosque at the 9/11 site are now being called “stupid racist”…..


…..just like the people who opposed Obama’s run for President because he had zero experience and a far left agenda were called “stupid racist”……


….just like the people who want the voter fraud/intimidation perpetrated by ACORN and the Black Panthers prosecuted were called “stupid racist”….


…….just like the people who opposed Obama’s failed stimulus were called “stupid racist”…..

…..just like the people who stated that Obama’s weak,naive approach to Iran,Russia,and the jihadist would backfire and embolden them were called “stupid racist”…

Over and over and over the “adults” that hurled bigoted insults at people that disagreed with their failed policies have been exposed as clueless, partisan hacks.

Baxter Greene on August 18, 2010 at 4:11 PM

REPEAL THIS TRAIN WRECK

kam582 on August 18, 2010 at 4:12 PM

People of all ages will be told that the treatment is too expensive so go home and die. Seniors will be first on that list.

Bishop on August 18, 2010 at 4:08 PM

….I forget….is it the red pill or the blue pill that is supposed to fix this problem.

Baxter Greene on August 18, 2010 at 4:13 PM

and will end up pushing more people onto Medicare and Medicaid:

MISSION ACCOMPLISHED!!

This is and has been the end goal all along.

angryed on August 18, 2010 at 4:18 PM

IOW, most people who had decent healthcare coverage will lose it. Thanks you &^%*&!@ democrats! I hate your guts.

Blake on August 18, 2010 at 4:18 PM

Anyone listen to Obama this morning in Ohio?

He said….they hoped it would lower costs. That really stuck in my craw. I thought they spouted off for months that this WOULD reduce costs. Now they hope it will?

Obama is all about the Audacity of HOPE.

Anybody who voted for him had to HOPE he would do what he said. When Pelosi said you had to vote for the bill to see what was in it, you had to HOPE it was good for you. Like you HOPE you win the lottery when you buy a ticket, even if you never won before.

A campaign based on “hope” is hard to beat–who wants to campaign against “hope” or for despair? So 53% put their “hope” in Obama’s flowery words and “yes we can” and didn’t worry about the “how” or the nuts and bolts, and neither did Obama. He got what HE hoped for–getting elected. But who cares about our hopes? Not Obama.

Now we can kiss this frog and HOPE it turns into a prince, or we can tell our friends he’s lost his magic wand, and HOPE they vote him out.

Steve Z on August 18, 2010 at 4:21 PM

When you increase companies cost by 9% who pays? I thought so.

Why does Imam Obama need to experient. Couldn’t he just ask some economist?

tarpon on August 18, 2010 at 4:28 PM

This is why my small business, who provides service to larger businesses has seen a complete shut down in the last 2 months and there will be no end.

Hellooo foo-stants! Hellooooo Weh-Fahe.

You know why? Because nobody is hiring skilled labor. Why? Because of ObamaCare.

/Thanks you farking idiot voters and Democratic heathen scum. I lost my business. Thanks.

Key West Reader on August 18, 2010 at 4:29 PM

Wait, I thought the GOP plan was:

“just don’t get sick”

guess that is better than:

“just don’t get treated”

ClassicCon on August 18, 2010 at 4:33 PM

Now we can kiss this frog and HOPE it turns into a prince, or we can tell our friends he’s lost his magic wand, and HOPE they vote him out.

Steve Z on August 18, 2010 at 4:21 PM

I hate, hating, but I truly do hate the people that did this to America. I’m all for helping out those in need, but why must they destroy the rest of our health plans in order to do that?

capejasmine on August 18, 2010 at 4:35 PM

….I forget….is it the red pill or the blue pill that is supposed to fix this problem.

Baxter Greene on August 18, 2010 at 4:13 PM

Probably both. Overdosing patients might become the norm. Move em out and make room for the next batch!

capejasmine on August 18, 2010 at 4:37 PM

If this disaster stays in effect it won’t be just Avastin which gets removed from the “We Can’t Afford It” list. People of all ages will be told that the treatment is too expensive so go home and die. Seniors will be first on that list.

Bishop on August 18, 2010 at 4:08 PM

Hey we have to cut costs somewhere. How else are we going to be able to pay for sex-change operations, penile implants, and residential drug treatment stays for all those illegal aliens? They know their rights, damn it, and they’re not shy about suing when they don’t get what they’re owed!

AZCoyote on August 18, 2010 at 4:40 PM

People of all ages will be told that the treatment is too expensive so go home and die. Seniors will be first on that list.

And this is the left’s strategy on how to deal the social ssecurity/medicare financial tsunami coming down the pike. Kill off the senior citizens.

tommyboy on August 18, 2010 at 4:43 PM

Probably both. Overdosing patients might become the norm. Move em out and make room for the next batch!

capejasmine on August 18, 2010 at 4:37 PM

Ahhh yea….thanks for reminding me….

……..this is part of the “New Norm”…..

…..goes along with high unemployment,high debt,lower wages,high foreclosure rates,higher taxes,destruction of the private sector……

……you know…the “New Norm”.

Baxter Greene on August 18, 2010 at 4:44 PM

Not surprised at all. The entire ObamaCare fiasco was built on a pile of lies. When it falls apart, they had hoped to move right into single-payer, which is what they wanted in the first place.

But looks like November is coming instead.

GarandFan on August 18, 2010 at 4:50 PM

My husband works for a municipality of about 25,000. We’ve been told to expect an increase of 17 percent. Part of that is due to 5 people with huge bills (cancer, in at least one case) but part is because of the Obamacare uncertainty.

I didnt’ vote for him…

lizzieillinois on August 18, 2010 at 5:58 PM

ClassicCon on August 18, 2010 at 4:33 PM

Their messages are essentially the same, except the Democrats will be more proactive in removing the ‘unfit’.

Dark-Star on August 19, 2010 at 10:56 AM