Obamacare | The Government's Takeover of Health Care
Obamacare to Cost Companies $5,000 More Per Employee
Created on Thursday, 17 April 2014 09:10
Written by Justin Credible
Employers, for the most part, have tried to keep quiet when it comes to Obamacare. The reason? They don't want to become a target of the Obama regime, since it has a history of silencing the opposition and making their medlings a living hell. The truth is that Obamacare is a significant financial burden on companies, so much so that many are cancelling their health care programs because it's less expensive to pay the penalty for the law. A new survey shows that the law will cost employers and extra $5,000 per employee.
From the Washington Free Beacon:
Obamacare will cost large companies between $4,800 and $5,900 more per employee and add hundreds of millions to their overhead, according to a new survey.
The American Health Policy Institute conducted a confidential survey of 100 large employers—those with 10,000 or more employees—asking what costs they expect to incur from Obamacare over the next decade.
Factoring in the health care law’s added mandates, fees, and regulatory burdens, employers anticipate cost hikes between $163 million and $200 million in 2016, a 4.3 percent increase. By 2023, employers will be paying 8.4 percent more than “what they would otherwise be spending” for their employees’ health care.
In the next 10 years, the total cost of Obamacare to all large American employers is estimated to be from $151 billion to $186 billion, according to the study.
“This study is a c-suite diagnosis of how [the Affordable Care Act] ACA is shaping large employer behavior,” Tevi Troy, president of the American Health Policy Institute, said. “We don’t know yet precisely how employers will react, but the study shows that employers will have to make real changes or incur heavy costs, which means that the ACA will have a significant impact on those in employer-sponsored health care.”
While noting that some will say the results will “lead to more economical use of health care dollars,” the study questions whether the increase in health costs could bring the “end of the employer-sponsored health care system.”
“If the law leads to significant cost increases for [employers], this would affect the behavior of employers, which could in turn affect how—and even whether—they provide health care for their employees,” the study said.
Health care costs have already been increasing for large businesses, which spend $578.6 billion each year to provide health coverage for 170.9 million employees, retirees, and dependents. However, numerous studies suggest that Obamacare is adding to employers’ burdens.
This is a massive expense for companies; new costs that will simply get passed onto the consumer.
Justin Credible is a contributing editor for Habledash.