And so it begins: One in ten employers already saying they’ll drop health coverage

posted at 3:21 pm on July 24, 2012 by Erika Johnsen

The Congressional Budget Office released their post-Supreme Court ruling reassessment of ObamaCare earlier today, and — unexpectedly — the latest numbers are even less attractive than we originally estimated. Who could’ve seen this coming?

The nonpartisan Congressional Budget Office on Tuesday said President Obama’s healthcare reform reduces the deficit by $109 billion over ten years.

This is a new re-estimate in light of June’s Supreme Court ruling upholding the law and it is a smaller deficit savings than CBO had previously projected.

CBO said the ruling added uncertainty to its estimates but it has put forward a number that comes down in the middle of possible outcomes.

In March 2011, CBO said that ‘Obamacare’ would reduce the deficit by $210 billion over ten years, despite increasing spending by $1.042 trillion over 10 years.

Despite their insistence that ObamaCare is going to help bring down the deficit (I remain wildly and incorrigibly skeptical), this is still just a fancy way of saying that ObamaCare is going to cost more than they originally thought — or, rather, more than they originally and miraculously managed to convince themselves it was going to cost.

I also wonder if there’s any way in heck they could possibly be taking into account all of the neighborhood effects that are going to come about as a result of ObamaCare, since there’s no possible way of knowing what all of those are going to be — and therein lies the trouble with massively intrusive behemoths of legislation that are enough to make the Founders roll over in their graves. The distorted incentives, regulations, many new taxes, and rampant uncertainty coming to fruition under the auspices of the PPACA are already rearing their ugly heads, and they’re not even finished writing all of the rules for the darn thing, let alone the mishaps that will come during actual implementation. Here’s just one fresh example:

About one in 10 employers plan to drop health coverage when key provisions of the new health care law kick in less than two years from now, according to a survey to be released Tuesday by the consulting company Deloitte.

Nine percent of companies said they expect to stop offering coverage to their workers in the next one to three years, the Wall Street Journal reported. Around 81 percent said they would continue providing benefits and 10 percent said they weren’t sure.

The companies, though, said a lot will depend on how future provisions of the law unfold, since most of the key parts are scheduled to take effect in 2014. One in three respondents said they could stop offering coverage if the law requires them to provide more generous benefits than they do now, if a tax on high-cost plans takes effect in 2018 as scheduled or if they decide it would be cheaper for them to pay the penalty for not providing insurance.

Oh joy, oh rapture. What other lovely little gems shall we discover if/when the ObamaCare saga continues to unfold?


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Comment pages: 1 2

I comment on as many blogs and on social media as much I can. Not only for me but also for folks like Trig Palin, and Ann Romney, and my elderly parents. Really, a LOT of people are living with situations that could be considered “death panel worthy” and we don’t even know about it. Scary stuff.

chelie on July 24, 2012 at 5:37 PM

Bless you, Chelie! And thank you for all that you are doing to help win this battle!

I hope that you are fortified by knowing that there is an army of volunteers working on this battle with you, in so many ways!!!

You, the Palin Family, Ann Romney and many others have good reason to understand this issue more clearly than most people.

But as we age, almost all of us are going to grow into “death panel worthy” status at some point. So this is a battle we all need to be fighting hard for!

Thank you for reminding us all of why this battle is so important!

Onward toward many victories in November!

wren on July 24, 2012 at 6:17 PM

wren on July 24, 2012 at 6:03 PM

Wren, you are correct. My company’s policy year begins in January. In February our insurance carrier notified us that our premiums for next year were going to rise dramatically for the same coverage, which is good, but certainly not platinum. We had to fill out survey forms for other insurance companies so the company could begin the process of getting competitive quotes for next year – a month after this year’s coverage began.

Some mandate.

Philly on July 24, 2012 at 7:05 PM

10 in 10 employees where robbed in the libor scandal by world banks that now finance romney campaign and HOT AIR puts ZERO articles about it!

nathor on July 24, 2012 at 3:27 PM

I wasn’t.

But then, I’m armed.

98ZJUSMC on July 24, 2012 at 7:41 PM

I wasn’t.

But then, I’m armed.

98ZJUSMC on July 24, 2012 at 7:41 PM

Libor is linked to almost everything in the economy and even if you use no credit at all, many goods you bought, even your guns, got more expensive because because of the guys that were manipulating the rate.
its like a small hidden tax, that everybody that uses credit pays to finance the luxury of a rather large number of bankers and traders. you should be mad!

nathor on July 25, 2012 at 8:41 AM

One in ten employers already saying they’ll drop health coverage

Disclaimer: I work for a small healthcare company that specializes in reducing expenses for employer-funded healthcare plans.

It will end up being higher than 10% in the next decade. When you look at #4 of the 21 Obamacare Taxes, one thing you don’t notice is how the threshold is indexed.

Our owner went through and read the entire Obamacare law. She used to be a healthcare lawyer before starting our company over a decade ago. Our company’s business plan is based around research reports she conducted for hospitals on how costs can be contained within our current healthcare system.

In one of our last meetings, she explained why she believes that most employers with under 500 employees will drop their plans. The 40% tax is indexed to a measure that increases at less than half the rate of current medical costs. Thus, by the time the law kicks in on 2018, nearly all plans will be subject to the tax. Larger corporations will try to absorb the costs, but small and medium companies won’t be able to… and will drop their plans.

dominigan on July 25, 2012 at 10:26 AM

Comment pages: 1 2