Firms to cut health plans as reform starts: survey

[xchrom]

http://www.marketwatch.com/story/firms-halting-coverage-as-reform-starts-survey-2011-06-06

LOS ANGELES (MarketWatch) — Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows.

While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly.

The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.

At least 30% 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.

[Fumesucker]

1. No one could possibly have predicted this..

So stop saying that..

:hi:

[xchrom]

2. ...

:spray:

[Vinca]

3. I've never understood why "business" isn't in the street demanding single-payer.

[Fumesucker]

4. It gives really large businesses an advantage over not so large ones..

Another barrier to entry for smaller businesses, large business is all about eliminating the competition and establishing a de facto monopoly.

Also it helps keep employees in check if they know they could lose their insurance coverage in the blink of a CEO's eye.