Company Provided Healthcare Disappearing Like Pensions Thanks to Obamacare

Remember Rep. Nancy Pelosi’s famous words that the Affordable Care Act is working and that it is reducing costs and improving coverage?

“And everybody will have lower rates, better quality care and better access."

Well, I’ve known other people that smoked similar stuff to what she’s been smoking, because she’s has no concept of the real world or what is happening to Americans across the land.

According to one report by Mercer, the average cost per employee health coverage will increase by at least 6.5% this year alone.  However, the same companies stated that if they made no changes to their current health plans, the actual cost increase will be 8%.  The same report said that 58% of the companies surveyed plan to pass that cost on to their employees.

I personally know of one employer whose health plan, if left unchanged, would be facing a 41% increase.  No, that is not a typo nor am I missing a decimal.  Other companies that I’ve heard about have reported increases of 10%-15% if they left their current polices unchanged.  A number of those companies will choose to decrease the coverage and pass additional costs to the employee.  That means the worker is now paying more for less coverage.

But wait, it gets better!

The same survey indicated that 6% of large companies with 500 or more employees will most likely eliminate employee health benefits altogether.  According to the US Census Bureau, there are roughly 18,469 companies in the US that employ 500 or more people.  If 6% of those companies stop providing employer healthcare benefits, that means that roughly 1100 large companies will stop providing healthcare coverage to a minimum of 550,000 Americans.

Even more small companies (16%) said that they will also eliminate healthcare benefits due to the increased costs of Obamacare.  These are companies that employ between 10-499 employees.  According to the Census Bureau, there are 633,141 companies with 10-19 employees; 526,307 companies with 20-99 employees and 90,386 companies with 100-499 employees.  If 16% of each of those categories are planning on eliminating health coverage, that means there will be 101,302 businesses with 10-19 employees; 84,209 companies with 20-99 employees and 14,462 companies with 100-499 employees that will no longer provide health benefits.  That would result in a minimum of another 4,143,400 (probably closer to 6-7 million) Americans will lose their employer provided healthcare.

All toll, Obamacare will effectively eliminate employer healthcare for at least 5-10 million Americans.

Sure, Obamacare calls for fines for companies that do not provide healthcare coverage, but look at it from the employer side of the equation.  A report by the Kaiser Family Foundation states that large companies pay an average of $15,745 per year for family coverage for just one employee.  The fines sets by Obamacare are $2,000 per employee for companies with 50 or more employees.  You don’t have to be a math whiz to see the savings of over $13,000 per employee per year.  Not providing benefits to a company of just 100 employees and paying the fines would save the company over $1.3 million annually.

The net result is that the 100 million plus workers that will retain their employer provided healthcare will pay 6%-8% more for less coverage, even though the annual rate of inflation is only about 2.1%.  Another 6-10 million Americans will lose their employer provided healthcare.  If they fail to purchase coverage for themselves and their family, they will face penalty taxes assessed by the IRS.  To purchase their own individual or family coverage will mostly likely cost them significantly more than they were paying with their employer because they will have to pay for the entire coverage themselves.  Chances are they will also end up paying more for less coverage.

What I’ve reported here is most likely a best case scenario when I consider all of the other reports I’ve read in the past 6 months. Like company pensions that have all but disappeared, it looks like Obamacare could well be forcing employer provided healthcare to also disappear from the work scene.  If you ask me, Nancy Pelosi and the rest of the Obamanites should be tarred and feathered and run out of the country on a rail like they use to do in the old days to liars, swindlers and cheats.

Comments

comments

  • Doodlebug

    Isn't this exactly what obummer wants? If this benefit is no longer part of the employment contract, more and more people will be looking for insurance and what comes in the door? obummer's one shoe fits all, universal health insurance and everyone eating right out of his hand. Socialized medicine starting us down the road to dictatorship. Someone needs to step on and squash this whole mess, starting at the top with obummer, pillosi and seedy reidy before they screw up gun control and illegal immigration with their "hurry up and get this done" attitude.

  • patriotusa2

    I agree with this article, and I imagine things even getting worse as time goes by. Obama had the gall to state that our utility bills will skyrocket but he left out the fact that everything else will also follow. Business can't survive anymore because of the restrictions, regulations, and the cost of Obamacare, and people are cutting back with their work force trying to make ends meet, leaving even more people out of work. The infrastructure in this country is in ruins, and our educational system ranks on the same level as third world countries. China is stealing all our technology and our military secrets while Obama hires Tiger Woods to help his golf game. The only place this country is headed is down, thanks to all the "change," and all those useful fools that elected him.

    • LetzBReal

      How can a guy like Obama, with all his negatives - too numerous to mention here, still get elected and no-one can stop him in all the evil he chooses to do? Only one possibility in my mind - End Times - baby. Better be ready. The Bible says there is coming a time when "unless the Lord had shortened those days no flesh woukd be saved". The Pied Piper of Pennsylvania Avenue is happily leading us down that road.

      • patriotusa2

        I've been saying the same thing for years, and for those of us who believe, all the signs are there. Insofar as how he could get elected - there was an article that I read today about a woman who worked on the polls in Ohio that they are now investigating because she was bragging she voted for Obama "six" times.

      • Dave

        I thinks about Barack Kardashian Obama using the Cloward - Pivin Strategy to over load the government hand outs like welfare, food stamps , unemployment and so on....Obama Care will be the last straw , the one that breaks the camels back.....Then when our economy collapse ,Obama will get a seat at the table of the One World Government....We all know what the Bible say about what happens after that...The Demoncrats must be stopped in the mid- term election of 2014....

      • http://www.facebook.com/people/Donna-Casas/1530991238 Donna Casas

        There is voter fraud all over the place. He never would have been elected legitimately without it.

        • David Han

          If you look at the states went for Obama, the blue votes all came from the metropolitan areas with the rest being red votes. Factor in the voter fraud such as counties voting 100% for Obama (statistically impossible) or municipalities voting over 100% for Obama, and add in the race card, there is no way to beat Obama. Sure he is only 6% black with the majority being white and middle eastern (please forgive me if I recall the percentages incorrectly), but all the 47% and the libtards see is his outside color and he can do no wrong in their eyes.

          I think that even as the realities of Obamacare and the rest of his policies hit home, the mass majority of his support (liberals) will never admit that he is evil and ruining the country. I actually have friends that voted for him and are madly infatuated with him. They can't see that the country is going down hill with their Obama provided blinders on. I have considered eliminating them as friends.

        • Go4man

          Oh ya? Wow!

        • Go4man

          I swear I saw voting centers in a couple of the Cemeteries I drove by in Chicago on Election day 2012.

          Wait, Obama won by a landslide in Illinois.

      • raccman

        "Cause most a us voted only once - know what ahm sayin"?

      • Vazir Mukhtar

        I'm not persuaded that we're in the End Times, but let's not debate that. Perhaps a sign of the End Times is that one can fool some of the people all of the time. BHO is certainly doing that.

        • LetzBReal

          If Obama can pull this off now - just think how impossible it will be dislodge him or any other Democrat after he's had 8 years to stack the deck. Personally, I think we're toast. Jim Bakker prophecied that Christian TV would be outlawed in America. Why? Because it necessarily opposes homosexuality & Islam. The youth of America, unchurched and uneducated in the things of God, support Obama. They've been untaught about the principles behind our Constitution. Today's youth disrespect the old and think that we're using valuable resources and should exit the earth and make way for them. Euthanasia is coming - payback for 40 years of abortion. Obama is making this a financial necessity. Jim Bakker strongly believes we're headed into the Tribulation period. He has a new book out called "Time Has Come".

      • http://www.facebook.com/jeffrey.coley Jeffrey Coley

        Because the GOP ran a Northeastern RINO against him, put on a campaign that could be summed up "vote for us because we suck less than our opponent" and insulted its most loyal supporters to court votes from people who will never vote Republican.

    • robert zuidema

      When you start having to pay fines or healthcare, just don't pay. The IRS will be swamped with non-payers and the whole system will collapse. Just do as I have done all my life, get sick see the doctor (private) and pay for services rendered, or go to the emergency room and they have to treat you!

  • Screeminmeeme

    Bit by bit, as the truth is being exposed about Obamacare, people will realize that most of this was predicted by conservatives before the diabolical thing was passed.

    But no one listened.

    So now we all have to suffer the consequences of the ill-fated judgment of willfully ignorant ideologues who gleefully delivered our future into the hands of a ruthless, gloating autocrat whose sledgehammer tactics are better suited to a banana republic.

  • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

    With respect to Giacomo I don't think he or she has ever smoked anything like Pelosi has or her coven of witches including Boxer, Waters, and of course Barney Frank. It has literally taken what logic out of her brain to leave her enough to walk and talk delusional fantasy.

  • woofpacker75

    This article is absolutely NOT baloney. Two years ago, the company I worked for was offered a 24% increase by BCBS-NC, which was negotiated down a bit. Last year it was a 38% increase, again negotiated down somewhat. Then I was laid-off, so I'm buying insurance for myself. All I could afford was a plan with a $3500 deductible and a 40% co-pay. I'm sure gonna try to stay healthy. Actually I truly believe in the plans that require folks to KNOW how much their healthcare costs. It's been hidden from us for so many years that most of us do NOT know what stuff costs, or should cost if we were not paying for folks who just show up at the ER for treatment of common ailments.

  • http://www.facebook.com/people/Donna-Casas/1530991238 Donna Casas

    Tarring and feathering sounds good to me!

  • Average Joe

    And the only people that di not see this comming are in goverment offices

  • ezekiel22

    Liberals will only sit back and blame greed for the increases. Of course they are absolutely correct on that. It is their own greed and envy that has blinded them to truth when they are told. I personally posted a letter from Blue Cross that stated exactly why the costs of their policy had gone up and it showed how much in percentages. Liberals tore into it like a pack of jackals at lunch saying it was a lie. I wonder what they think now? The costs of procedures as well as premiums are past affordable now especially if you have a disease with no cure. Well now it is Obama's mess he made it.

  • Vazir Mukhtar

    I doubt that anyone can convince me that having many firms dropping their employee healthcare plans wasn't part of the ObamaCare strategy from its conception. It makes government control of healthcare a reality all the sooner.

  • http://www.facebook.com/lee.riffee Lee Riffee

    Obamacare is such a gargantuan mess that few can figure out, much less deal with. I can see why employers would rather drop coverage and just pay a fine. There's also the nuttiness about coverage being "affordable" but the idiots forgot that many people also have families that they share coverage with, not just themselves, which would make for a very unaffordable plan for someone with a family to cover. Then there's the another part of the "affordability" rule - I just did this math in my head the other day for myself and found another contradiction. If someone can't be forced to spend more than 9% (or maybe it's 7%; but I think it's 9) of his/her income on a health plan, but the only plan they can get at that level isn't "allowed" under Obamacare, then what do they do? If I had to buy a plan that's "acceptable" it would cost me way more than 9% of my income! And I have only myself to insure.
    Sadly there's going to be a whole lot of people in my situation who will simply have to either put up with the crappy plan they have or will be able to buy, or just do without and pay the "fine" or tax or whatever they call it.

  • disqus_lJapfzCIUh

    But....Nancy Botox Piglosi and the rest of the Rats made darn sure that they were to be Exempts from their nightmare health care scam that they set us up with...they also Exempted their friends....their Union Goons...their families...and....still... I can't believe all the stupid....yes....the stupid idiots who voted them in again...You can't fix liars and stupid...Wait until early January 2014 when this scam really kicks in...Hospital workers will need to have a Swat Team available 24/7...Can you imagine taking your mom or dad to the ER and some Death Panel guy tells you that your mom/dad are too old and therefore will be just left to die on that cold stretcher in a very cold ER Dept with no care because Obama said so....That's what Obama voted for in Illinois when it came to the newborn who dared to live through that abortion not to do anything but let him/her on a shelf to die alone...Obama is nothing but a know nothing Puppet to the Czars who are writing this crap....nonsense...

  • ArlenWilliams

    Actually our health care must be separated from corporate paternalism. Maybe this will help in the long run, if we can win. We must seize control of our own health care, not government, not employers, not insurance companies.

  • lokiswife

    They should take away Congress' private gold-plated healthcare program and tell them "You're on your own, just like most of America. Find your own insurance, pay for it yourself, no more taxpayer paid benefits. You made the decision for them, now you live by the same rules and problems as they do."

    • http://www.facebook.com/grant.halverson.1 Grant Halverson

      True!!! Karen

  • dicky-do

    I am sure we can all negotiate a better deal with the insurance companies by ourselves than if our employers were negotiating for a thousand or more of us. This "we can know what we are paying" line is just a distraction. The bottom line is who pays, and how much!

  • http://www.facebook.com/people/James-A-DeHart/100003260975568 James A. DeHart

    Too bad the entire country must suffer for the poor choice made by 53% of us. My only consolation, as I file for unemployment, is I cast my vote for the other guy.

  • http://www.facebook.com/jeffrey.coley Jeffrey Coley

    Not a bad thing, in my opinion. People responsible for their own health insurance (as they are for life and property) is preferable to being dependent on the employer. Only trouble is, Obama is doing it to force everybody into his uber-MedicAid plan. A really clever legislator will insert a few "escape clauses" into some legislation - for example, individual healthcare is not subject to any of the crippling reqirements and regulations placed upon group and publicly funded health insurance. Allow a private market to flourish alongside and out of the reach of the overlords in Washington.

  • gbandy

    I just wonder why the People have such short and limited memories? Pelosi's ridiculous comments before the passage of this insane bill and all of Obama's promises that were broken. Yet Obama was re-elected. Now we the People are going to pay and pay and put up with this insanity.

  • Kent2012

    kenyan boy promised the unions that there would be "single payer insurance" if he was elected in 2008. "single payer" means the taxpayer, that means 53% of us will be funding universal health care......

  • Steven

    How many people remember that employer paid health insurance actually started as a response to government interference? Government imposed wage limits prompted employers to find other way to increase compensation for more desirable employees.

  • jimmijames

    Great article, but there is one thing missing. Why? Many of us saw this outcome prior to this survey. The long term goal is total government takeover of healthcare and this is the first step. Over time more and more people will lose their employer provided health coverage and more people will be forced into medicare/medicaid plans. Just like company pensions have disappeared once IRA/401K plans came into existence.

  • Go4man

    Why should businesses be required to dilute their profits with millions of dollars of healthcare costs. They are in business to make money, not provide healthcare. Obamacare gives employees of companies, discontinuing healthcare benefits, a way to buy health insurance. Win, Win! Businesses can increase their bottom line or hire more employees, and employees have access to cost effective healthcare coverage.

    Wait Businesses can only have 50 or less employees to avoid having to provide health care insurance. My mistake.