Behold: the natural result of
Obamacare Obamatax. For many employers the choice is a catch-22. Either they fire current employees because they can no longer afford the health benefit requirements, or they pay the more affordable tax and drop health insurance benefits all together. As many as 1/10 of American employers now say they plan pick the latter option.
from the Hill:
About one in 10 employers plans to end workers’ health insurance as the new healthcare law takes effect, according to a new study.
The finding could bolster opponents of the law, who argue that its changes to the healthcare system will force workers out of insurance plans they like. Supporters of the law say most people will keep their current coverage.
Surveying 560 U.S. companies, consulting firm Deloitte found that 9 percent of employers are planning to drop employee health benefits within three years. Eighty-one percent said they would continue covering employees, and 10 percent said they were not sure.
The study was conducted between February and April, before the Supreme Court ruled to uphold most of the healthcare law. Deloitte said it does not believe the decision would change companies’ responses.
The law includes a provision requiring people to carry health insurance or pay a fine, and seeks to make it easier for Americans to find and afford coverage outside of their employers.
The study found that smaller firms were most likely to say they will drop coverage. Thirteen percent of companies with 50 to 100 workers said they would end policies within three years, compared with 2 percent of companies with more than 1,000 workers.
Now, the burden will fall to the individual who must buy health insurance or pay a tax himself, and this option is also becoming more difficult. Health insurance premiums have only gone up under Obamacare, despite the President’s promises that it would do the opposite.