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.