How Will Your Company Handle Obamacare?
Posted by Larry Doyle on June 8, 2011 5:57 AM |
What issue in our nation generates the strongest personal reaction?
While my poll is entirely unscientific and my answer is my own opinion, I STRONGLY believe that the topic of healthcare generates the strongest reaction of any issue facing our nation. Why? It’s personal nature, that is, “if you do not have your health, then what else really matters”?
With the healthcare landscape poised to change rather dramatically over the next few years, have you inquired from your company how it may handle the changes under Obamacare? Would your employer tell you? Has your employer fully studied and reviewed the impact of Obamacare on its business?
I want to thank the loyal Sense on Cents reader who shares with us a review of how employers plan on managing under Obamacare.
Three in ten employers will abandon offering health coverage to their employees when President Barack Obama’s Affordable Care Act takes effect in 2014, according to a survey published by McKinsey Quarterly.
While only 7 percent of employees will be forced to switch to subsidized-exchange programs, 30 percent of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published by McKinsey Quarterly.
“At least 30 percent of employers would gain economically from dropping coverage, even if they completely compensated employees for the change through other benefit offerings or higher salaries,” the study says, according to Market Watch.
That doesn’t mean too many people are going to quit due to health coverage issues, the study adds.
“Contrary to what employers assume, more than 85 percent of employees would remain at their jobs even if their employers stopped offering [employer-sponsored insurance], although about 60 percent would expect increased compensation.”
As the 2012 presidential elections approach, potential and confirmed Republican contenders are vowing to repeal the so-called Obamacare, including former Speaker of the House Newt Gingrich.
“In addition to the unconstitutional nature of individual and employer mandates, we are learning that they simply don’t work,” Gingrich says, according to CNN.
Such measures require the government to specify exactly what coverage must be included in insurance for it to qualify, Gingrich adds.
“The resulting costs to the taxpayer — and strain on the budget — lead the government to try and control healthcare costs by limiting healthcare services. The inevitable result is rationing by a nameless, faceless, unaccountable board of government bureaucrats.”
This last statement evokes real fear on behalf of American citizens. As well it should. We will certainly hear a lot more on this topic as Presidential hopefuls navigate across our nation during the upcoming campaign.
As this survey asserts, I do not doubt that many companies will try to shift an increasing percentage of the cost of healthcare to their employees. Increasing overall costs on employers, especially small businesses, is not conducive to job growth.
Are people around your office talking about this? What are they saying?
Thanks again to the reader who shared this report.
Please get your friends and colleagues to do the same. Thanks!!
I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.