McKinsey: 30% of Companies Plan to Cut Healthcare as Obama Reform Starts

Tuesday, 07 Jun 2011 10:19 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
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.

obama200109956252.jpg
President Barack Obama
(Getty Images photo)
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."

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved