The White House says the delay of the small business employer mandate – and a portion of the mandate for larger businesses – until 2016 is just part of an effort to smooth the transition for the private sector.
We’ve already discussed how this is actually a fairly straightforward ploy to help Democrats avoid disaster at the polls later this year. But the Wall Street Journal has figured out the other reason for this supposed act of benevolence toward business.
It’s very simple. The less people covered by businesses, the more who will flock to the Obamacare exchanges. And what the exchanges need now to survive are MORE PEOPLE and their cash, particularly younger, working age types who will pay for health care they don’t need in order to subsidize the less-healthy people who appear to be signing up too much.
From the piece:
For September 2013 through January, only about 25% of the 3.3 million sign-ups so far are ages 18 to 34. That share needs to rise to about 40% to make the actuarial math work . . .
The employer mandate is designed to interlock with the rest of the system, and people are supposed to be eligible for subsidies only if their employers don’t offer insurance. Since the White House is releasing many more businesses from the mandate’s obligations, many more people will suddenly qualify to join the exchanges.
Sorry if you were expecting to get a nice company plan. It’s the exchanges and their narrow networks for you. And once you’re there, your company will have even less incentive to avoid a fine and cover its employees come 2016.