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Companies to Save Billions By Dumping Employer Insurance Plans for Obamacare

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Thursday, 03 May 2012 13:04

Noticeably absent in the news as of late is Obamacare.  Yes, this is intentional because President Obama's signature piece of legislation, which was rammed into law against the will of the American people, is extremely unpopular.  Additionally, the elite media has started their re-election campaign for Obama, which naturally means that all Obamacare stories will get buried deep in the pile.  A new report put out by Republicans on the House Ways and Means Committee indicates that companies offering health insurance for their employees would stand to save billions of dollars by ending those plans and switching to Obamacare.  This was part of the Democratic plan behind Obamacare because it will lead to complete control of the health care industry by the federal government.

The Daily Caller picked up the report.  It's everything you expected: companies that don't offer health insurance to their employees will be fined $2,000 per employee.  That's substantially cheaper than most health care plans.  Therefore, companies would benefit dropping coverage for their employees and paying the fine.  This is in stark contrast to President Obama's promise that "if you like your health care you plan, you can keep your health care plan."  He knew this was lie and hoped people wouldn't figure it out until his second term in office.  Too late.  Employees with employer health care insurance had better start looking for alternatives.

Based on an analysis of health care data received from 71 of the America’s Fortune 100 companies, the report found that if the companies terminate insurance coverage in favor of paying the $2,000 per employee penalty, they would incur a financial benefit.

According to the report, companies surveyed would save on average $400 million — or a total of $28.6 billion in 2014 — simply by putting their employees on the government exchanges.

Between 2014 and 2023, the report says, the average savings per company would be nearly $6 billion, a total savings of $422.4 billion.

“These employers spent an average of $5,197 on health insurance benefits, after taxes, per employee in 2011,” the report reads. “In 2014, this average would increase to $6,487 per employee, which far exceeds the $2,000 per full-time employee penalty they would pay for not offering coverage under the Democrats’ health care law. One Fortune 100 company could save more than $3.5 billion in 2014 alone, while another could save $1.8 billion. Four companies could save in excess of $1 billion in 2014 if they dropped health coverage and paid the mandate penalty.”

Committee Chairman Dave Camp, a Michigan Republican, said the data indicates a threat to employer-based insurance.

“The findings of the report, along with existing research, show that the Democrats’ health care law threatens the stability and sustainability of the employer-based health insurance system,” Camp said in a statement.

“Anyone who gets insurance through their job should be worried about what will happen next, because there is a distinct financial incentive for employers to terminate health care coverage under the Democrats’ health care law,” he added. “It is clear to me that because of this law, Americans will not be able to keep the health care plan they have and like. American workers and taxpayers simply cannot afford to have this law remain on the books.”

Obamacare's primary objective from day one was to have the government take over the health care industry.  This was no health care reform, it was the fundamental transformation that President Obama promised.  Eliminating private insurance options is designed to enable the public option by fiat, which is a Democratic wet dream.  Their desire for free health care for everyone, despite it NEVER working anywhere in history, is the means to their end.  Government controlled, socialized medicine was the primary objective of Obamacare since day one.

Chuck Justice is the editor-in-chief for Habledash.