Employers Say Obamacare Will Cost Them $5,000 More Per Employee
Businesses reveal in confidential survey that Obamacare will add up to $200 million in costs
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 employersthose with 10,000 or more employeesasking what costs they expect to incur from Obamacare over the next decade.
Factoring in the health care laws 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 dont 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......
Employers Say Obamacare Will Cost Them $5,000 More Per Employee | Washington Free Beacon
The stupid thing about all these analyses is that they don't take into consideration the fact that health insurance costs were going to increase anyway. Secondly, these are all guesses based on guesses. Nobody knows for certain if the rates are going to increase or go down. So much of this speculation is based on the idea that all these new people now having insurance are all going to need major surgery and expensive drugs and that none of them ever needed any of that in the past.
Personally I think costs are going to come down and that much of this has been well overestimated, but we will see.
Since the people that benefit from the ACA generally fall into two categories...those who couldn't afford healthcare without large subsidies...and those with preexisting conditions who couldn't get insurance because of the costs or weren't covered for some ailments...it's simple common sense that both of these groups will now be taking advantage of their new health care to get treatments. When you are treating people who haven't been receiving preventative care it's also common sense that many of them will need expensive care for a multitude of problems.
The people that the ACA needs desperately to sign up...the young and the healthy...are rapidly figuring out that the Affordable Care Act is only "affordable" if you're getting subsidies or are now covered for a preexisting condition. The young and the healthy will be expected to pick up the cost of all this care while not using it...something they were never clued in on by the liberals who wrote this law. That's the only way it could possibly work from an accounting standpoint.