There is yet more bad news for American taxpayers concerning the full enactment of the Affordable Care Act law (Obamacare) next January 1, 2014.
In a survey conducted by Mercer, a human resources and financial services consulting firm, one in five companies employing less than 500 workers say they are either likely or very likely to cancel company-provided healthcare coverage within five years of Obamacare’s mandatory implementation.
Unfortunately, those politicians in Washington, DC who voted for the law in April, 2010 hadn’t read the massive bill or their vote might have been very different.
The survey indicates that as much as 43 percent of companies contacted will expect their employees to pick up the majority of healthcare expenses starting this year. More than 10 percent of larger companies (over 500 employees) indicated they will drop coverage altogether within five years of enactment.
The numbers suggest that the net effect on employee take-home pay and the massive dip in average income will be devastating to the U.S. economy and the unemployment rate.
How many congressional leaders actually knew Obamacare’s repercussions would be so extensive to private business?
The survey indicated that even if the largest companies continue to offer health insurance, 70 percent of those companies employing over 4,999 employees will mandate workers’ pay a larger share of the cost.
Smaller company employees (500-4,999) do not fare much better at 60 percent.
Why are these numbers so disturbing?
Approximately 150 million Americans presently are provided company healthcare benefits. The average cost for health insurance to a family of four is around $15,745 per year, according to Kaiser Family Foundation.
Obviously any change by employers will mean extra costs to employees unless they qualify for government subsidies.
That's an Obama administration specialty.
Here’s the major reason companies will opt out of the Obamacare extra expense: By simply paying the fine for not providing coverage under the rules of the Affordable Care Act, companies with 50 or more employees can save enormous costs by simply paying a measly fine of $2,000.
According to Mercer, those companies surveyed with less than 500 workers may provide what is known as “defined contribution.” That is a fancy term for providing a fixed sum employees can spend on their own health insurance.
The Economist noted that these private company “schemes” may be the only way they can survive the Obamacare law. It’s simple economics, especially for smaller employers.
It will also mean that companies over the Obamacare coverage mandate of 50 employees will designate part of their workforce to less hours to remain as part-time workers.
Less working hours will mean less income which means less spending power which means more unemployment, etc.
The entire legal definition of the law invites fraud and economic disaster for small businesses especially. Small business was the president’s campaign pledge to protect the middle class from additional taxes.
Remember?
Also remember when President Obama said, “If you like your healthcare plan, you can keep your healthcare plan?”
The 2014 midterm elections should be interesting 10 months after full enactment of this catastrophic law.
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