“The companies will really be hard pressed to justify why they would continue to have to spend the kind of money they spend by offering insurance through corporate plans when there’s an alternative that’s subsidized by the government” said Michael Thompson, head of S&P IQ.
Even a former adviser to President Obama, Zeke Emanuel, predicted less than 20 percent who now get employer-provided insurance will still get it ten years from now. He wrote in his book “Reinventing American Health Care” that “By 2025 few private-sector employers will still be providing health insurance.”
Emanuel told Fox News, “it’s going to actually be better for people. They’ll have more choice, most people who work for an employer and get their coverage through an employer do not have choice.”
The reason analysts see this historic change in health coverage is because the tax penalty for not offering insurance — $2,000 per worker– is so much less than the cost of providing it.
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