A new study by the research firm S&P IQ predicts the de facto death of employer-provided private health insurance, finding that 80 to 90 percent of it will disappear as Obamacare digs its fangs into the health care system.
The reason is simple economics. From the report by Fox News:
The companies will really be hard-pressed to justify why they would continue to spend the kind of money they spend by offering the insurance through corporate plans when there’s an alternative that’s subsidized by the government.
You see, as Obama likes to say, it’s math.
The tax penalty is $2,000 for not covering an employee. That’s far less than it costs to cover an employee. You can even give them money for deductibles and premiums that aren’t government-supported and still come out ahead. And then you can do your business instead of being in the insurance business.
And this, despite the promise you could keep your insurance, is by design. Because the Obama people, whatever their flaws, can also do math.
Ezekiel Emanuel, one of Obamacare’s chief architects, predicts less than 20 percent who now get employer provides insurance will still get it 10 years from now. Exults Zeke:
It’s going to actually be better for people. They’ll have more choice – most people who work for an employer and get their coverage through an employer do not have choice.
More choice, yes.
More choice of bad plans trying to meet government mandates. More choice of bad health care from doctors, hospitals and nurses getting squeezed by insurers desperately trying to stay in business. And more choice of taxes to pay to fund the whole scheme.