A study published in McKinsey Quarterly is shining a bright light on some unwelcome side effects of the Affordable Care Act (also referred to as ObamaCare). The Affordable Care Act, passed in March of 2010, is the legislation designed to phase in over the next several years that promised to provide more affordable healthcare to all of us, including individuals that may not have coverage today. This will be accomplished indirectly it seems, by increasing the level of government-controlled healthcare (which brings on its own set of side effects).
A number of studies have been published by reputable sources that, to no surprise, are at odds when examining the conclusions surrounding the potential effects of the Affordable Care Act. The study published by McKinsey surveyed 1,300 employers and found that “at least 30% of companies say they will definitely or probably” stop offering healthcare coverage that is sponsored (financially and administratively) by their organization.
The organizations that are planning to drop their coverage programs are also more likely to have researched, in detail, the effects of the Act. In fact, the study points out, 50-60% of companies that are “keenly aware of the health-reform measure” are expected to reduce or eliminate their sponsoring of existing healthcare plans. As 2014 approaches it will be interesting to see how this number grows as more and more companies look closely at how the Affordable Care Act, designed to reduce costs, will truly affect their pocketbooks.
Our opinion is that a mass transfer of healthcare responsibility from business to government would decrease both efficiency and affordability working against the Act’s primary promise. See http://tinyurl.com/5wrvhux for more details and a White House response.
