There wasn’t really a question about it, was there?
Why? It’s a matter of simple economics.
If health care costs are expected to rise as predicted, employers will find fines less costly (and far less burdensome) than continuing coverage for their employees. As Obamacare slowly gets digested, employers are beginning to understand that change comes at a price and so, accordingly, they are planning change as well…slowly…incrementally.
Still not convinced? How about some more evidence:
Towers Watson, a leading human resources consulting firm, has conducted a survey of 661 human resource and benefit specialists across America. While benefit professionals are still digesting the new law, the survey shows that they are even more skeptical of Obamacare than the public is.
These benefit specialists represent a broad range of industries, and are responsible for choosing health-insurance plans for almost 4 million Americans. If their fears come true, the future of American health care is bleak. Among the highlights:
- 90 percent believe that Obamacare “will increase their organization’s health care benefit costs”;
- 88 percent intend to pass the increases onto employees by increasing employee premium contributions or other cost-sharing measures;
- 74 percent intend to “reduce health benefits and programs” by using stingier health plans, restricting eligibility for health coverage, and using spousal waivers or surcharges.
And what about Grandma? According to the survey, seniors will feel it the fastest and most dramatically.
More than three in four employers (85%) believe that health care reform will reduce the number of large organizations offering employer-sponsored retiree medical benefits. And 43% of employers that currently offer retiree medical plans plan to reduce or eliminate them.
How’s that for “change you can believe in?”
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776
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