Monday, June 06, 2011

Firms to halt health insurance coverage

From Marketwatch:

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.

My comment: This is not a bad thing, employer-based health insurance is an anachronistic inefficiency left over from the wage-control era of the last century. It was bound to be destroyed with the next deflationary cycle in the employment market-- which is now. This will allow individuals more mobility and choice, and my prediction is that it's one step closer Medicare-for-all basic national health insurance which can be supplemented by private policies.


Kris said...

...and yet the public sector in Wisconsin continues to protest when asked to pay 12% towards their own Cadillac health plans.

Tony said...

Man, you really don't like those damn teachers. Your gripe is with the school boards who negotiated the contracts on your behalf, not the workers.