“The more a company knows about coming changes to the nation’s health care laws, the more likely it is to consider radically restructuring the way it provides insurance to employees, according to a study by the consulting firm McKinsey and Co. The study, which is being circulated among Republicans, predicts that as many as 30 percent of companies will stop offering health insurance benefits, reduce the level of benefits, or offer benefits only to certain employees. If this prediction holds, the number of Americans who could see changes to their health insurance would be far more than the 9 million to 10 million estimated by the Congressional Budget Office.”

“Our research suggests that when employers become more aware of the new economic and social incentives embedded in the law and of the option to restructure benefits beyond dropping or keeping them, many will make dramatic changes. The Congressional Budget Office has estimated that only about 7 percent of employees currently covered by employer-sponsored insurance (ESI) will have to switch to subsidized-exchange policies in 2014. However, our early-2011 survey of more than 1,300 employers across industries, geographies, and employer sizes, as well as other proprietary research, found that reform will provoke a much greater response.”

“ObamaCare will lead to a dramatic decline in employer-provided health insurance—with as many as 78 million Americans forced to find other sources of coverage. This disturbing finding is based on my calculations from a survey by McKinsey & Company. The survey, published this week in the McKinsey Quarterly, found that up to 50% of employers say they will definitely or probably pursue alternatives to their current health-insurance plan in the years after the Patient Protection and Affordable Care Act takes effect in 2014. An estimated 156 million non-elderly Americans get their coverage at work, according to the Employee Benefit Research Institute.”

“Obamacare encourages employers to dump coverage on two fronts. First, several provisions will increase the cost of employer-sponsored insurance (ESI), including new insurance requirements and mandates, and a tax on high-cost health plans. Employers who don’t offer a minimum level of coverage deemed essential by the federal government will face a penalty of $2,000 per worker, but as the authors point out, Obamacare’s other ‘requirements will increase medical costs for many companies. It’s important to note that the penalty for not offering coverage is set significantly below these costs.'”

“Are small-business owners taking advantage of a new tax credit made available last year under the Affordable Care Act?
The Small Business & Entrepreneurship Council, an advocacy group that has been critical of the health-care law, says no – and offers its own research indicating that owners aren’t finding the tax credit useful or applicable to their companies… The SBE Council polled a random sample of 304 small-business owners and found that only 7% have taken advantage of the health-care tax credit.”

“Last month was tax time, and some small businesses filed at last for the health insurance tax credit included in the health reform law. Most will be disappointed. Since the Patient Protection and Affordable Care Act (PPACA) passed a year ago, its supporters have touted its benefits. Yet, it’s important to remember why the credit does not deserve any lavish praise.”

“Monday’s New York Times had another classic entry in the annals of Obamacare. It seems that nursing homes are asking HHS for waivers from Obamacare’s requirement that employers provide health coverage to their workers. Nursing homes, even though they are in the health-care business, often don’t provide insurance to their employees. They can’t afford to.”

“It’s not rocket science: When costs go up, some or all of those additional costs will be shifted to employees. ObamaCare makes it more expensive for many businesses to keep existing health benefits, so employees will end up paying a greater share.”

“Our actuarial modeling of more than 130 employee benefit plans
shows that last year’s health reform law imposes additional costs on
employers’ health plans. The study also shows that the law will create
a financial incentive for some employers to terminate health benefit
plans in 2014 when new Insurance Exchanges take effect.”

“Of the 204 new Obamacare waivers President Barack Obama’s administration approved in April, 38 are for fancy eateries, hip nightclubs and decadent hotels in House Minority Leader Nancy Pelosi’s Northern California district.
That’s in addition to the 27 new waivers for health care or drug companies and the 31 new union waivers Obama’s Department of Health and Human Services approved.”