Remember! Obama promised that if you like your health insurance, you can keep it. Corporate bean counters, however, are weighing their options. Companies such as McDonalds, 3M and, most recently, Boeing have made it known that Obamacare is threatening the existence of their health care plans. Critics of the health care bill have from the beginning warned that this might happen – and shortly after the legislation was passed it was reported that major corporations were already exploring the possibility of dumping their health insurance plans. If the dam burst and millions were sent to fend for themselves in the exchanges, it would send the costs of the already insanely expensive health care bill through the roof.
The White House says the idea that employers would drop their health insurance plans for employees is crazy talk. However, the Democratic governor of Tennessee and business consultants at Deloitte say employers are definitely considering doing just that:
While it’s too early to proclaim the demise of job-based coverage, corporate number crunchers are looking at options that could lead to major changes. Gov. Phil Bredesen, D-Tenn., said the economics of dropping coverage are “about to become very attractive to many employers, both public and private.”
That’s just not going to happen, White House officials say.
“The absolute certainty about the Affordable Care Act is that for many, many employers who cover millions of people, it increases the incentives for them to offer coverage,” said Jason Furman, an economic adviser to President Barack Obama.
Yet at least one major employer has shifted a greater share of plan costs to workers, and others are weighing the pros and cons of eventually forcing employees to strike out on their own.
“I don’t think you are going to hear anybody publicly say ‘We’ve made a decision to drop insurance,’ ” said Paul Keckley, executive director of the Deloitte Center for Health Solutions. “What we are hearing in our meetings is, ‘We don’t want to be the first one to drop benefits, but we would be the fast second.’ We are hearing that a lot.” Deloitte is a major accounting and consulting firm.
Read the whole AP article, it’s jam packed with sobering details.